Banks aspiring to become global must have a presence in India and other emerging economies, who are set to become a major source of financial sector revenue and profit growth, according Ernst & Young.

“In the near future, banks will not be able to say they are global unless they have a presence in China, India and a few other countries, because these emerging markets are going to be a major source of financial sector revenue and profit growth,” the international consulting firm said in a report prepared jointly with UK-based research firm Oxford Analytica. The report, titled ‘Strategic Business Risk 2008 - the Top 10 Risks for Business,’ noted that a late entry into these Asian markets would make it difficult for foreign banks to keep up with competition.

For the Asian banks themselves, the report pointed out, one of the main threats is the rapid transformation from “Government bureaucracies into corporate governance and transparency-driven organisations.”