JP Morgan Chase has plans set to tap the overseas market again after the financial crisis, says the recent article by New York TImes. The company aims at unearthing opportunities in the BRIC countries.

Read the full article here

“JP Morgan just announced a major reorganization. The impetus is the bank’s strategic shift to pursue the banking opportunities in BRIC countries. This is one more example of western companies realizing that it is more risky to ignore emerging markets than to pursue them, despite all the institutional voids that characterize these markets. In fact, as we discuss in our book, companies like JP Morgan can gain by filling critically institutional voids in emerging markets, so it is a no brainer opportunity to pursue. Citi, HSBC, and Standard Charter all have been pursuing emerging markets vigorously for many years now. They all made significant commitments to follow through – some of them even considering moving headquarters to the Asia and dual- listing on Shaghai stock exchange. Meanwhile, home-grown world class banks – emerging banking giants as we call them in our book – are building great franchises in emerging markets. Examples include ICICI bank in India and Bank of China. While JP Morgan has recognized the obvious attractiveness of emerging markets, it has to contend with both its western counterparts who have been at it for a very long time, and the emerging banking giants who are determined not concede their home markets to western interlopers. It will be interesting to see who will win this emerging race!”, -Authors, Winning in Emerging Markets.

Do you agree? Looking forward to your comments and experiences in similar situations.

One Response to “JPMorgan Sets Sights Overseas”

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