, APAC
112 views
Pixabay.

Brace for ‘volatile’ credit conditions in APAC for 2025: expert

Lenders may turn more risk-averse and seek higher premia.

Asia Pacific credit conditions are expected to be more volatile in 2025 due to uncertain trade and foreign policies by the incoming Trump presidency, reports S&P Global Ratings.

Compounding obstacles could push lenders to turn more risk-averse and seek higher premia.

More US tariffs against Chinese exports could slow down China’s export growth driver, said Eunice Tan, head of Asia-Pacific Research at S&P Global Ratings.

"A slower China and softer global trade will squeeze revenue and growth for export-centric Asia-Pacific,” Tan warned.

Wider tariffs and intensifying geopolitical tensions could hit energy prices and supply chains. The ability of companies to pass through costs is uneven.

Countries with a large trade surplus with the U.S. (Vietnam, Thailand, Malaysia, and India) could be vulnerable to universal tariffs.

The global trade slowdown could curb growth and the revenue of Asia-Pacific exporters, Tan warned.

APAC’s growth is expected to slow to 4.2% in 2025 and 4.1% in 2026.

“If tariffs prompt U.S. inflation to resurge, the Fed may slow its monetary easing. Asia-Pacific central banks could keep rates high to limit outflows. A strong U.S. dollar, narrower offshore funding access, and costlier interest pose strains,” Tan said.

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Westpac appoints Kate Dee as chief people officer
She has been the chief people officer of Bupa Asia Pacific since 2018.
Retail Banking
SMBC inks MOU to explore commercialization of stablecoins
They will explore technical, regulatory, and market infrastructure requirements for it.
ICBC’s risk diversification supports resilience amidst China’s slowdown
Capitalization should be sufficient despite ICBC not being included in the first round of the government’s capital injection.
Retail Banking

Exclusives

RCBC boosts rural presence with ATM Go
The service, which allows cardless transfers, is now available in all Philippine cities.
BCA superapp drives digital transaction growth
Inter-account transfers were the most widely used service, followed by virtual payments.