Taiwanese banks exposed to domestic property and China risks, says Fitch

taipei-taiwan

The credit outlook for Taiwanese banks in 2011 is stable, but should domestic property prices fall or there is a sharp economic slowdown in China they would be exposed, Fitch Ratings believes.

The rating agency cautions that potential negative drivers could result in a sharp increase in credit costs - by more than 100-200 basis points depending on individual banks' risk profiles - in the event of stress-test scenarios developed by the agency. Stress events include a downturn in highly cyclical

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