Chinese banks pass extreme loan default stress test

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 Singa

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