Securitisation may ease Basel III SME lending concerns

Credit conservation

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The Asian Financial Crisis of 1997-98 is still too fresh in the collective memory of regional banks for them to be reckless when it comes to credit risk management. As a result, credit decisions tend to err on the conservative side, although this is not always the case in some command economies such as China where state-owned banks are used for policy purposes.

The pervading conservatism may not be economically the most efficient use of capital, but it did put Asian banks in a strong position to

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