Asian banks strong enough to withstand Fed taper risks: Moody's
SINGAPORE (AFP) - Asian banks are well capitalised to withstand risks arising from an end to the US central bank's massive stimulus programme, credit ratings firm Moody's said on Wednesday.
"Overall, we expect to see broad ratings stability for the banks in Asia in 2014," said Mr Stephen Long, Asia managing director for financial institutions in the Asia-Pacific at Moody's.
"One of the reasons why we continue to have a broadly stable outlook is that the Asian banks continue to have pretty strong buffers to absorb more challenging times ahead. Their capitalisation is usually pretty strong." Analysts are concerned at the possible impact if the United States Federal Reserve scales down its huge bond purchases further as the US economy improves.
The Fed, in announcing last month that it would taper its US$85 billion (S$108 billion) a month in asset purchases, plans to start with a relatively modest US$10 billion reduction this month.