Asia 100 2005: Banks find the cloud’s silver lining

Asia's banks have capitalized on better general economic conditions by cleaning up long-overdue problems. With a few exceptions this has meant the sector is stronger throughout the region.

Asia 100
Methodology Asia Top 100 (excluding Japan) North Asia Top 25
ASEAN Top 25 Sub-continent Top 25 Oceania

THE POOR PERFORMANCE of large Asian banks in 2003 and 2004 is, paradoxically, good news. Bank managements and regulators have taken advantage of the good economic conditions in Asia to recognize the losses stemming from problem loans. In some cases, for example in China and Korea, higher loan losses have cut into equity. Despite the lower capital levels, the balance sheet clean-up is good, because it gives these banks a stronger foundation for growth.

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