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Credit Conditions Asia-Pacific Special Update: Why Asia-Pacific Banks Are Shielded From Current Turmoil

Asia-Pacific banks tend to have more conventional models relative to those of global peers that recently failed or had to be rescued. This could shield the region's banks from some of the market turmoil emanating from such events. Nonetheless, second-order effects, such as tighter financing access and higher risk premia demands, could hit the region's credit markets and borrowers.