Banks in the Asia-Pacific (APAC) face slowing credit growth and tighter loan monitoring as the credit cycle turns, Fitch Ratings says in its first APAC Financial Institutions Quarterly Dashboard.

While authorities in various countries have taken steps to rein in indebtedness, Fitch believes that macroeconomic stability is key to keeping losses in check.
 
In addition, controlling the pace of loan growth and preventing bubbles (often in the property sector) associated with rapid growth is more important than focusing solely on the absolute credit/GDP levels.