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TEXT-S&P Report: Divergent Trends In Asia-Pacific Banks' Risk

(The following was released by the rating agency)

MELBOURNE (Standard & Poor's) Oct. 10, 2012--Divergent trends have emerged in recent years across Asia-Pacific banking systems on three important inter-related factors: private sector debt, house prices, and funding. That's a key finding of a new report, titled "Divergent Trends In Banking System Risks Emerge Across Asia Pacific", that provides an update on the banking system risks in the 18 Asia-Pacific countries analysed by Standard & Poor's Ratings Services.

"On one hand, some of the region's larger emerging economies are showing an increase in personal demand for credit and other banking products," said Standard & Poor's credit analyst Sharad Jain, in the report. "On the other hand, some of the mature economies are showing signs of a credit-growth slowdown, some of them are even deleveraging--particularly after the global financial crisis in 2008. Additionally, in some countries, a slowdown in credit growth has been accompanied by increasing funding support from depositors, thereby reducing need for offshore borrowings."

These factors form a key part of Standard & Poor's assessment of banking system risks, including our Banking Industry Country Risk Assessment (BICRA) scores for each country. We expect that potential for changes in our BICRA scores on banking systems in Asia-Pacific to be varied, reflecting the divergent trends in these important factors.

The report is available to subscribers of RatingsDirect on the Global Credit Portal at . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at . Members of the media may request a copy of this report by contacting the media representative provided. RELATED CRITERIA AND RESEARCH

-- Global Banking Faces Economic Risks In The Eurozone, The U.S., And China, Oct. 4, 2012

-- Buffeted By Recession, The Gap Between Western Europe's Core And Peripheral Banking Systems Widens, Oct. 4, 2012

-- Banking Industry Country Risk Assessments Update: October 2012, Oct. 2, 2012

-- Banking Industry Country Risk Assessment Methodology And Assumptions," published Nov. 9, 2011

Keywords: MARKETS RATINGS ASIAPACIFICBANKS