S&P – A Waning Economic Tide May Expose Hazards For Weaker Asia-Pacific Banks In 2014

If a rising tide lifts all boats, it remains to be seen how a falling tide might affect Asia-Pacific’s banking sector. Standard & Poor’s Ratings Services believes financial institutions in the Asia-Pacific region may face more hurdles in 2014 after relatively resilient years because softer economic growth and wary financial markets will likely weigh on their asset quality. Although we see GDP growth in Asia-Pacific improving slightly to 5.4% from 5.3% in 2013, slower growth and tightening monetary conditions in China could have spillover effects on markets including Indonesia, Australia, Taiwan, Korea, and Hong Kong. In addition, the Federal Reserve–the monetary authority in the U.S.–will likely continue tapering its quantitative easing program, and this could lead to more volatile foreign exchange and interest rates.

Read more at https://ratings.standardandpoors.com/financial-institutions/2014-Asia-Pacific-Bank-Outlook.html?sp_mid=30050&sp_rid=22560

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