Persistent, high levels of nonperforming loans could undermine bank lending and economic recovery in Asia’s developing countries.
The COVID-19 pandemic has increased the importance of ensuring that the poorest and most vulnerable people have access to formal financial services, given their role in supporting inclusive economic recovery and resilience.
Just as past crises triggered international and regional financial cooperation, the pandemic offers an opportunity to collectively improve financial resilience and soundness.
The pandemic provides an opportunity for regional financial cooperation on reforms to make Asian banks more resilient to crises.
Past financial crises have demonstrated how adequate financial safety net arrangements—globally, regionally, and nationally—are vital to safeguarding financial stability.
The region’s financial architecture is stronger and more resilient than 20 years ago, but it faces new challenges.