International banking invasion could create project finance jobs in Aus

Several foreign banks are trying to set up in Australia on the back of the booming resources sector, and more project finance jobs could be generated as a result.

China's Agricultural Bank of China and Bank of Communications, Spain's Banco Bilbao Vizcaya Argentaria (BBVA) and Indian lenders Bank of Baroda and Union Bank of India are among firms awaiting regulatory clearance, according to Reuters. Several other foreign lenders are reported to be in the same situation.

Picking up more project finance work is the main reason for getting a banking licence here, Jonathan Grosvenor, BBVA's managing director and head of corporate clients Asia Pacific, told Reuters.

Oliver Darkes, managing director, Wellesley Partners, says the foreign firms will target project finance professionals, along with metals and mining, and infrastructure candidates.

The new entrants will headhunt from both the domestic banks and the more established international institutions, says Darkes. Their ability to attract quality candidates will depend on how active they become in lending. BBVA, for one, has grand ambitions: it was to be "a tier one banking service provider to clients in Australia," according to Grosvenor.

Darkes says the main advantages of joining a new firm are getting a fresh challenge and leveraging off its global franchise. "That said, it's a very competitive market and somewhat over-broked, with competitive pricing on deals."

And these firms are only likely to cause a minor recruitment ripple. "It would be surprising to see small foreign banks building sizeable teams to rival the large established IBD divisions already set up with global investment banks in Sydney and Melbourne," says Anton Murray, director, Anton Murray Consulting.