Asian banks face funding squeeze Credit growth may slow down after US downgrade

HONG KONG: Asia's banks are seen facing a bump-up in dollar-funding costs and potentially slower credit growth after Standard & Poor's (S&P) historic US debt-rating downgrade, strengthening China's case to push the yuan as a global alternative to the dollar.

Ratings agency S&P cut the US long-term rating by one notch to AA+ from AAA on Friday, sparking a sell off in global stock markets already roiling from concerns about the eurozone's debt crisis.