Asia Pacific banks have reached cyclical peak: Moody’s

HONG KONG: Moody's Investors Service says that while banks in Asia Pacific have been resilient in the wake of the global financial crisis and enjoy some of the highest ratings globally, they have likely reached a cyclical peak.

“Borrowers' leverage has increased, asset prices have materially appreciated and, in the process, both borrowers and banks may have become more susceptible to asset quality deterioration, especially if the interest rate cycle turns" says Stephen Long, managing director for Moody's Financial Institutions Group in Asia Pacific.