Asia-Pacific Banks Stable Amid Negative Market Events, S&P Says

MT Newswires Live06-30

Asia-Pacific banks continue to be stable despite lingering adverse market events such as the Middle East conflict and inflationary pressures, S&P Global Ratings said on Tuesday.

The region's banks have limited direct Middle East exposure, S&P financial institution ratings sector lead Gavin Gunning said.

Spillover effects from the conflict pose the greatest risk for the banks, with the indirect impact being manageable but increasing for certain economies, Gunning said.

S&P holds a stable outlook on 92% of rated Asia-Pacific banks, indicating stable trends over the next one to two years.

Financial institutions have ample buffers for war-linked constraints, although credit losses could increase by $180 billion under S&P's downside scenario.

Banks also face medium risk from the negative hit of technological advancements such as AI-linked cyber risks, S&P said.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment