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From China to Singapore, banks in Asia have had a tumultuous year, with some soaring and others under pressure. (Source photos by AP and Getty Images) 
Business Spotlight

Asia's rising interest rates boost banks -- but risks grow for 2023

Lenders in Japan and China lag peers enjoying fatter borrowing margins

DYLAN LOH, KENJI KAWASE and MITSURU OBE, Nikkei staff writers | East Asia

SINGAPORE/HONG KONG/TOKYO -- Banks across Asia are profiting from the global trend toward tighter monetary policy to fight inflation -- with two big exceptions.

The U.S. Federal Reserve's repeated interest rate rises this year set the tone for many Asian central banks, with the notable exceptions of China and Japan -- although a recent policy shift by the Bank of Japan has appeared to signal tightening is on the way there too. As a result, lenders in the region's two biggest economies are not enjoying the kind of fatter borrowing margins seen elsewhere.

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