Moody’s: Household debt level in S-E Asia still manageable

KUALA LUMPUR: The high level of household debt in a number of South-East Asian (SEA) countries poses a risk for private consumption growth and banks’ asset quality, but is ultimately manageable, Moody’s Investors Service said.

“While elevated household debt could place refinancing pressure on mortgage and consumer credit as the global credit cycle gradually tightens, SEA bank systems are largely sound and can withstand significant asset deterioration,” said Moody’s vice-president and senior research analyst Rahul Ghosh.