APAC banks face mounting credit losses from property exposure

Credit losses could rise 7% to $490b in 2023, S&P Global Ratings projected.

Credit losses could rise 7% to $490b in 2023, S&P Global Ratings projected.

Concerns loom in the Asia-Pacific financial sector, particularly regarding property-related risks, S&P Global Ratings warned.

Credit analyst Gavin Gunning of S&P Globa Ratings emphasised monitoring risks from China and Vietnam, as well as potential challenges faced by nonbanks in Korea due to real estate project financing.

ALSO READ: Expect ‘stagnant’ Chinese structure finance market in 2024: S&P

Last year, banks in the region experienced credit losses of $490b, expected to rise by 7% in 2024. Should real estate markets deteriorate beyond expectations, nonperforming loans linked to property could exceed estimates, leading to higher credit losses.

S&P Global Ratings

Can't Login? Sign up for an account

Email address The email address is not made public. It will only be used if you need to be contacted about your account or for opted-in notifications.

Password

Confirm password

Provide a password for the new account in both fields.

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Already have an Asian Banking & Finance account? Login

Can't log in?

Return to login

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit