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14 de Junho de 2014

In 2008, the ratio stood at 2

Asian banks’ bad debt pile highest since global financial crisis

HONG KONG/BENGALURU (Reuters) Bad debts at Asian banks have buy canada goose jacket cheap climbed to their highest since the global financial crisis and the trend will likely worsen as regional economies battle canada goose store against China slowdown and volatile oil and commodities prices, a Reuters data analysis shows.

A pedestrian holding an umbrella and her wallet walks past the word “CASH”, part of a sign on a street at a shopping Canada Goose Jackets district in Tokyo, Japan, March 7, 2016. REUTERS/Yuya Shino/File canada goose outlet sale Photo

The bad loans pile at 74 major listed Asian banks, excluding Indian cheap canada goose uk and Japanese banks, reached $171 billion at the end of 2015, the survey of banks showed, the highest since at least 2008. Non performing loans (NPLs) jumped canadian goose jacket 28 percent from a year earlier, nearly twice the growth in 2013.

Indian and Japanese banks were not included as their fiscal year ends in March.

With economic uk canada goose growth in the region slowing, analysts expect the asset quality of Asian lenders will Canada Goose sale continue to deteriorate as banks canada goose uk black friday start publishing quarterly earnings, forcing canada goose clearance them to make writedowns that will hurt profit and depress valuations.

Asian central banks have cut interest rates to ensure abundant liquidity, but uncertain economic growth and Canada Goose Online weak export demand will likely lead to more loan defaults in the near term, analysts and bankers said.

expect asset canada goose black friday sale quality to weaken and Canada Goose Coats On Sale bad loans to increase. the key factor we see is Asia entering into more buy canada goose jacket challenging phase of the credit cycle, said Gene Fang, Moody associate managing director for financial institutions group.

the Canada Goose Parka recent past, we saw relatively strong growth and low interest rates, which encouraged loan growth and higher leverage. But growth Canada Goose online has now weakened, most significantly in China, which is impacting the rest of the region.

The average ratio canada goose coats of bad loans to gross credit for 29 Asian banks for which this uk canada goose outlet data is available stood at 1.9 percent last year the highest since 2009, the survey showed. In 2008, the ratio stood at 2.5 percent.

In China, where the economy grew 6.9 Canada Goose Outlet percent in 2015 the weakest pace in a quarter of a century bad loans surged to cheap Canada Goose a decade high at the end of December, with Moody canada goose coats on sale expecting continued asset quality pressure over the next 12 18 canada goose uk shop months.

Last year, the total bad debt pile for all listed and unlisted Chinese banks stood at $297 billion.

Japanese banks average ratio of bad loans to gross credit stood at 2.5 percent at the end of last year, a slight improvement from 2.7 percent at the end of 2014, Thomson Reuters data showed.

In India, where the central bank is forcing a debt clean up, total canada goose distressed debt surged nearly a third between September and December to $120 billion. The March quarter will probably show canada goose uk outlet a further increase, analysts said.

for the whole banking system are likely to rise further this year as the overall economy remains weak I can canada goose factory sale tell when canada goose clearance sale NPLs will peak. It depends on the economic situation.

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