Banks are now aggressive and recognize that having cleaned up their loan portfolios and balance sheets, they need to re-position themselves to take advantage of the boosting economy. Over the next few years, commercial banks will have to focus on product innovations and diversifying their reach to infrastructure, housing, SME and microfinance industry while exploring and reaching out to new and under-banked regions.
The investors and the industry are seeking better investment and financing alternatives and solutions, with demand for private debt, asset based and mortgage based securities, credit derivatives and hedge products etc. now emerging from different segments of economy and population. Banks will need to poise themselves to meet these demands for continued growth. 10  BIS Review 22/2007