ANZ Bank: Evaluating Market Opportunities in France, Brazil, Korea

This report provides a comprehensive analysis of the potential markets for ANZ Bank in France, Brazil, and Korea. It examines the market structures, attractiveness, and profitability of each country, along with potential problems and future developments. The French market, while having a unified supervisory system, faces challenges from FinTech and low loan interest rates. Brazil offers growth prospects despite potential recession, but ANZ may face issues with short-term credit and bad loan provisions. The Korean market presents modest profitability and risks associated with bankrupt conglomerates and limited risk management skills. Future developments include technological innovations in France, emergent technologies and venture capital in Brazil, and privatization and digital financial products in Korea. The report also discusses foreign exchange and trade implications, cultural aspects impacting market entry, and concludes that Brazil offers the best prospects for ANZ Bank due to its growth potential, despite the challenges.

N A M E O F S T U D E N T S :
N A M E O F P R O F E S S O R :
C O U R S E T I T L E :
D AT E :
ANZ Bank

Introduction
The Australian and New Zealand Banking Group
Limited is ranked third among other Australian financial
institutions.
The entity’s headquarters are located in Melbourne and
its revenue is estimated to be 21.07 billion AUD
(Alessandri and Nelson 2015).
The presentation aims to analyze the markets in which
the bank can trade including France, Brazil and Korea.

The structure of market in France
One supervisory system is in place in eradicating the
distinction between commercial or merchant banks.
The Bank of France oversees the activities of other
enterprises operational in the republic (Bai,
Krishnamurthy and Weymuller 2018).
Moreover, the Bank of France issues notes assuming
operations which are monopolistic.

The structure of the Brazilian market
According to Almeida and Divino (2015), financial institutions are categorized with respect to
their specialization including the National Monetary Council, National and Social Development
Bank, Banco do Brasil, the Central Bank of Brazil as well as the Federal Savings and Loan
Association.
The CMN is responsible for developing monetary policies essential for social as well as economic
developments while BACEN executes policies relating to exchange controls while regulating the
activities of financial institutions.
Banco do Brazil finances institutions operating privately or publically and executes lending
programmes which attract subsidies from the federal government.

The Korean market’s structure
 Banking services are highly concentrated in Korea albeit the efforts made
with regards to restructuring with numerous efforts geared towards mergers
and acquisitions.
 The banks operational in Korea include specialized local institutions and
branches affiliated with different foreign banks (Emery 2017) as well as an
informal market that deals with credit in addition to capital markets.
 The Bank of Korea is required to supervise the banks operational in Korea.

The French market’s attractiveness and profitability
The banks in France are grouped under one
supervisory system.
The earnings set to accrue to the banks
established in France are set to experience
some hurdles owing to the interests offered
for loans which are quite low (Dietrich and
Wanzenried 2014).
Hence, the profitability anticipated by
operational financial institutions is bound to
be quite low.

The Brazilian market’s profitability
In Brazil, the input of state governments can
be anticipated depending on the
specialization of the institution involved.
Regardless of the recession that might be
evident in different global regions, the banks
that operate privately in Brazil continue to
register increased growth.
Therefore, the market offers some viable
prospects that encourage market entry.

The Korean market’s attractiveness and profitability
The financial system established in Korea constitutes of
enterprises that offer services which may or may not be
finance related.
The risk presented by Korea’s banking industry
indicated some improvements in the assessments
conducted (Trendowski et al. 2017).
However, the profitability which can be anticipated
from operating in the nation is considered to be modest.

Potential problems in the French
market
Novel disruptive technologies such as FinTech are heavily changing the course of how
business can be conducted in France which is bound to present a challenge for ANZ
Bank.
Non-bank providers such as Western Union as well as Moneygram present the
possibility of stiff competition for ANZ operations.
Client preferences are also undergoing a shift where retail clients anticipate e-commerce
integration with retail payments as well as social media which is an obstacle that ANZ
Bank must be prepared to overcome.

Potential hurdles in the Brazilian
market
The scope for ANZ Bank to operate in Brazil is limited which portends a challenge
as the system mostly focuses on the provision of credit for short durations (Galán, Veiga
and Wiper 2015).
ANZ should anticipate to offer credit on a short-term are also considered as a means
through which profits can easily be attained
However, the challenge anticipated is that the bank may be forced to experience an
increment in the provisions which are made in respect to bad loans when dealing with its
Brazilian clientele.

Challenges to be anticipated in the Korean market
In Korea, most of the conglomerates which are operational are bankrupt
implying that they are a liability should they decide to borrow from ANZ Bank.
Moreover, the likelihood of ANZ acquiring some bad debts is quite high
from its targeted clients (Yun and Moon 2014).
The Korean market is characterized by limited capacities with respect to
risk management skills which is a significant hurdle should the ANZ desire to
evade the credit hardships evident national wide for operational institutions.

Future developments (French market)
France is anticipated to make use of various innovations including marketplace as well as
blockchain technology to foster some revolutions with regards to how trade is conducted
(Schoenmaker and Peek 2014).
Trends indicate an increasing preference for ascertaining that noncore activities are outsourced.
Moreover, the workforce available is likely to exhibit extensive diversity as recruitment is
bound to occur globally.
Therefore, it will be mandatory for banks to create a culture that is cohesive in order to attract
the loyalty of employees.