Sibos Osaka has become the latest victim of the worsening China-Japan diplomatic spat with several Chinese banks pulling out of the conference, it has been reported.
Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China have withdrawn amid the ongoing standoff between the two countries over sovereignty of the Senkaku Islands in the East China Sea. It has also been revealed that China Citic Bank, Baoshang Bank and Bank of Inner Mongolia have joined the boycott too.
Most of the global transaction banks will be disappointed at the absence of the major Chinese banks, said one industry expert who will be attending the conference. There are growing business flows between Chinese and global banks, especially with the internationalization of the Renminbi and the increasing liberalization of the securities markets.
The Chinese contingents absence will certainly frustrate many delegates who had hoped to win business in the region.
Sibos in Asia without the Chinese banking community is like a North American Sibos without the U.S, the insider said. The reality is that China is the key growth engine of the world. Many banks will feel they have lost, with the absence of the Chinese banks, half the potential new business opportunities from Sibos.
Charles Gubert