"Local Banks Should Fill in Gap Left by European Banks in Asia

KUALA LUMPUR, May 22 (Bernama) -- Any pullback by European banks from Asia is an opportunity for local banks to grow their business in the region, former Pakistan central bank governor Dr Ishrat Husain said on Tuesday. "If they withdrew their money abruptly in a time of crisis, then the damage would have been much greater, but these are the normal calm days of the banking sector," he told reporters after delivering a lecture at the Asian Institute of Finance (AIF) Distinguished Speaker Series here. Ishrat Husain, who is currently Dean and Director of the Institute of Business Administration (IBA) in Karachi, said this would be an opportunity for Malaysian banks as well as Asian banks to fill in the gap. However, he noted strong financial institutions such as Standard Chartered, Citibank and HSBC would continue its operations in the region. "I am not pessimistic about the flows of capital to Asia. The region is still the growth centre for the world and other banks will come in, replacing those who were pulling out," he said. Meanwhile, he said Malaysia would continue to be attractive to investors because of its promising market, high income group and talented workforce. -- BERNAMA