subprime-impact-on-banks-limited-says-fitch

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 institutions group in AsiaûPacific.

Marshall says that the key issue is the need for banks to provide liquidity rather than adding materially to their subprime exposures, and the ratings agency expects the banks to be...
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