Asian banks may need to step up Hormuz-related credit provisions
Regional banks were slow to respond in the first quarter, but the crisis isn’t going away quickly
Asian banks may come under pressure to increase their provisioning against defaults on corporate loan books this year, as the conflict in Iran and closure of the Strait of Hormuz threaten to drag on into the second half of 2026.
“It is still unclear whether the ceasefire will hold, if it is sustainable, or what the ultimate geopolitical landscape will look like,” says Terry Zhang, head of global
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