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Moody's: 2017 outlook for APAC banks negative: asset quality, profitability challenges

Moody's with their latest outlook for banks in Asia Pacific

  • For 2017 is negative
  • The ratings agency citing challenging operating conditions in the region, which will weigh on the banks' asset quality and profitability
  • "Problem assets will rise from a generally low level, due to previous rapid credit expansion, elevated corporate and household leverage in some economies, the ongoing recognition of credit problems, and challenges in commodities and cyclical industries"
  • "Foreign private capital flows will remain volatile in emerging Asia, pressuring domestic currencies and weakening operating conditions for the banks"
  • "And, property price increases in parts of Asia Pacific will further amplify credit risk for the banks."

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The 16 banking systems analyzed by Moody's are: Australia (negative banking system outlook), China (negative), Hong Kong (negative), India (stable), Indonesia (stable), Japan (stable), Korea (negative), Malaysia (stable), Mongolia (negative), New Zealand (stable), the Philippines (stable), Singapore (negative), Sri Lanka (stable), Taiwan (stable), Thailand (stable) and Vietnam (stable).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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