Monday, 27 July 2015

Moody’s poll cites asset bubbles as top credit risk for Asian banks

The unwinding of asset bubbles is the top macroeconomic threat to Asian banks in the coming 12 months, followed by a growth slowdown in China, says Moody's Investors Service.

Moody's vice president and senior credit officer Eugene Tarzimanov said on Monday  asset bubbles -- particularly in real estate -- were an important but manageable source of credit risk for the banks in 2015 and 2016.

In its recent investor poll on Asian banks, it said property prices have appreciated particularly rapidly in Hong Kong (Aa1 stable), India (Baa3 positive), Malaysia (A3 positive) and Singapore (Aaa stable) since the 2008-09 global financial crisis.

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