NEW YORK: Fitch Ratings has reviewed the exposures of most of its rated Asia-Pacific banks to US subprime-backed structured securities and found that direct exposures are low, generally amounting to just a few per cent of the investing bank's equity capital.
“Losses on such investments will put a dent in annual earnings but do not pose a systemic risk as they are not a serious threat to the soundness of the banks we have surveyed,” commented David Marshall, managing director and head of Fitch's Financial Institutions Group in Asia-Pacific.
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