ASIA-PACIFIC BANKING OUTLOOK: HIGHER CREDIT COSTS AND LOWER EARNINGS WILL TEST BANKS IN 2012, By Naoko Nemoto, Tokyo The Asia-Pacific banking industry faces a turning point in 2012 following three years of stable performance. Europe's debt crisis, lower regional economic growth, and contraction in some property markets could impair loan quality and push credit costs higher. Slower economic growth is likely to impede credit growth and fee-based activities for banks. And this, in turn, could weaken profitability. A WEAKER CORPORATE SECTOR AND SLUGGISH LOAN DEMAND COULD STRAIN JAPANESE BANK PROFITS Weak profitability may continue to dog Japanese banks, which could face higher credit costs in 2012. Although credit costs could remain moderate, reflecting the domestic economic recovery, they will be...
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