ASEAN banks face sharper debt risks as interest rates rise

From Singapore to Thailand, lenders scrutinize exposure to shaky loans

With the Fed on the warpath this year to hike rates to tame inflation, Singaporean lenders have benefited as interest margins rose, but they now face debt risks. (Source photos by Shinya Sawai and Ken Kobayashi)

DYLAN LOH, Nikkei staff writer

November 11, 2022 15:39 JST

SINGAPORE -- Banks in the Association of Southeast Asian Nations are facing pronounced risks from exposure to loans commanding higher interest premiums as borrowers grapple with higher costs of repayment in an era when cheap financing has passed.