Settling Into a Niche
As the number of banks serving the Latin American market shrinks, relationships with local companies take on added importance. A surevy by Greenwich Associates of CFOs in Argentina, Brazil, Chile and Mexico finds that international and local banks each serve a role.
Consolidations among banks in Latin America are occurring
more frequently than in Europe and Asia - in fact, at a pace
more in line with the United States. Foreign banks have been
buying aggressively into local Latin American banks and many
now have Latin American subsidiaries. Studies conducted by
Greenwich Associates over many years in other markets show that
over time, foreign banks have a profound influence on
relationship management practices by local banks operating in
their own corporate or wholesale markets. It is clear that the
banking industry throughout the world is dividing itself into
two groups: banks offering most corporate products globally,
and banks whose service is primarily domestic - though many of
these offer a limited number of international products to
clients who require them. Currently this segregation is even
more dramatic in the major Latin American markets defined in
our study as Argentina, Brazil, Chile...
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