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S&P Estimates APAC Banking Sector to Incur ~USD180B More Credit Losses Due to Middle East War
2026-04-15 13:59:15
S&P issued a report warning that a prolonged war in the Middle East would deal a heavy blow to the Asia-Pacific banking sector.

Under a downside scenario, credit losses for Asia-Pacific banks could increase by about USD180 billion over the next two years as indirect risks begin to surface.

If oil prices rise and supply chains deteriorate, S&P stressed that cumulative credit losses for 2026-27 could even reach USD910 billion.
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