Asian banks able to grow despite global challenges

Asian banks could be able to withstand the challenges they are facing amid the uncertainties with global financial conditions, according to Steven Barnett, senior resident representative of the International Monetary Fund in China.

According to him, the very rapid and steep rise in interest rates, although necessary to tame inflation, does impact banks.

In developed Asian countries and regions, some banks are facing higher funding costs and losses in the market values of their assets, while emerging lenders in Asia could see risks from these factors, including the drying up of external funds, he explained.

"However we think that Asian banks will be able to withstand the stresses because, in general, they're well-capitalized and have strong capital buffers," he said.

He made the remarks at a panel discussion at the China Annual Investor Wealth Summit, which was jointly held by UK lender HSBC and Chinese business and financial news provider CLS earlier this week.

He said that, over the next five years, economic growth in Asia is expected to be about 1 percentage point higher than the global level.

He also expects the Association of Southeast Asian Nations will grow at around 4.5 percent this year and 4.9 percent next year.

liuzhihua@chinadaily.com.cn