Total bank IT spending across North America, Europe, and Asia Pacific will grow to $173.3 billion in 2012 - up 2.8%from 2011, but largely fuelled by a 6% growth in Asia Pacific, indicating that IT spending growth is slightly on the decline.

In a new report, IT Spending in Banking: A Global Perspective, analyst firm Celent says that spending by banks in Asia Pacific will grow by 6.0% in 2012 to $59.4 billion. This growth will continue in 2013 to reach $62.3 billion. North American banks, particularly US banks, are reporting more dismal forecasts, with spending set to grow by "a mere" 2.4% in 2012 to $54.7 billion. This figure will increase gradually to 2.9% in 2013 to $56.3 billion.

European banks are in far deeper trouble and are reporting little to no growth. Spending by European banks will grow 0.3% in 2012 to $59.2 billion. European spending growth will continue to be flat through 2013, increasing by just 0.4% to $59.5 billion.

"From an IT spending perspective, the next couple of years are going to be rocky," says Jacob Jegher, Senior Analyst with Celent's Banking Group and co-author of the report. "The good news is that a slight turnaround is in sight. When examining the sum of the three regions, IT spending is expected to grow by 3.1% in 2013 and 3.4% in 2014."