Deleveraging Asia

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Deleveraging Asia

Asia Pacific NPLs up by 23% to $640bn

This report examines Asia Pacific’s macroeconomic and banking landscapes with a focus on the market opportunities in China, India and Australia / New Zealand.

Macroeconomic uncertainty continues to prevail at both the global and regional levels, with many Asian nations impacted by the global economy and the ongoing trade tensions between the US and China.

The adoption and implementation of global standards across Asia is renewing banks’ focus on the classification of, and provisioning for, distressed assets. While the full commercial impacts remain to be evaluated, the ongoing process has already highlighted the benefits to be achieved by reducing NPL exposures.

Opportunities in Australia and New Zealand

Opportunities for strategic deleveraging efforts and an increasing role for non bank lenders are emerging in Australasia. This has largely been driven by recent regulatory measures, notably as a result of the royal commission findings, and follows a similar path to that seen in European markets over recent years, where enhanced regulation and focus on conduct has changed the banking landscape.

Ways to leverage the report findings

Loan portfolio sellers: what are the key factors driving loan portfolio sales in the region, and which buyers are active in the market.

Debt investors: discover which are the most active markets, and where are the largest investment opportunities likely to emerge in the coming year.

Published: November 2019

Deleveraging Asia

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