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Asia Pacific banks ‘least affected’ by commodity risks 

June 2, 2016

Mayvelin U. Caraballo, The Manila Times

Debt watcher Moody’s Investors Service sees rising credit risk from commodity sector lending among Asia Pacific banks, but said that banks in the Philippines will be among the ‘least affected’, due to their low exposure to these kinds of loans.

Moody’s analysis is contained in its just-released report on banks in Asia Pacific (excluding Japan) entitled, “Commodity Exposure Will Add to Asset Quality and Profitability Pressure,” authored by Eugene Tarzimanov, a Moody’s vice president and senior credit officer.

“The least affected will be banks in Hong Kong, Australia, Taiwan and the Philippines, because of either the banks’ low exposure to the energy/commodity sectors, the low reliance of these economies on commodities exports, or both,” the report stated.

Moody’s showed that the loan exposure to borrowers in commodity-related industries in the banking system of these economies was below 5 percent. Read more

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