Articles and opinions by Wendy Weng
Mortgages in China and Hong Kong to witness moderate growth
Chinese banks’ mortgage loan growth dropped the most in 2017 and will continue to be affected by property cooling measures and relatively tight liquidity conditions. Hong Kong banks’ mortgage loan growth, on the other hand, increased, but they are not expected to maintain it due to tough operating conditions.
Bank-backed mobile wallets are a work in progress
Technological disruption is reshaping the payment landscape, creating a tight mobile wallet business environment. Banks must reshape their strategies that will help enhance their competitiveness in this market.
Heavy household debt burden poses risks in some Asia Pacific countries
Household indebtedness has been on the rise, which is putting future economic growth and financial stability in jeopardy. Thus, many central banks have unveiled measures to curb high household debt. In Asia Pacific, Australia and South Korea are facing the most serious household debt problems.
Brighter near-term outlook belies real risks
The Asia Pacific banking sector will benefit from the improving global and regional economic conditions in 2018. Overall, better asset quality is expected, and banks will maintain relatively stable profitability and capitalisation. Nevertheless, there are growing concerns over the potential asset price corrections, high private debt, and geopolitical risks.