The US and European banks are able to offer sophisticated financial products, establish international conglomerates putting pressure now on Asian banks to improve the product offerings in their own markets. Although universal banks already exist in many Asian countries, in general, Asia lags behind in this aspect. Not all Asian countries permit universal banking.
For example in China, the law strictly segregates banking and securities related activities based largely on the conflict of interest concerns and unique situations arising from the Government’s dominant role in the banking sector and the securities markets, both in the capacity of owner as well as regulator.