Subprime impact on banks limited, says Fitch

A survey by the ratings agency finds that Asian banks have little direct exposure to subprime-backed structured securities.

Fitch ratings released a report on Wednesday confirming that Asia banks will suffer limited direct impact from the US subprime crisis, with direct exposures limited to just a few percent of each investing bank's equity capital.

ôLosses on such investments will put a dent in annual earnings but do not pose a systemic risk as they are not a serious threat to the soundness of the banks we have surveyed,ö says David Marshall, managing director and head of FitchÆs financial...

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