Chinese banks pass extreme loan default stress test

Asian banks generally are well capitalised and look set to ride through the eurozone debt crisis with few problems, says Moody's

Asian banks are unlikely to suffer significantly from potential problems with European sovereign debt and the potential for increased non-performing loans in certain countries, according to Moody's Investors Service. Even a massive default in loans is unlikely to impair the stability of the largest banks in the region.

"Primarily what lies ahead for [Asian banks] is growth returning to trend in the region," said Deborah Schuler, senior vice-president and group credit officer for Moody's in