Loan hopes rise, margins fall with heavy refinancing

25 Jan 2013

Bankers in Asia Pacific are becoming optimistic about the chances of an increase in loan volumes, confident that falling margins will continue to lay the groundwork for a resurgence. But some bankers and analysts argue that those low margins will not be sustainable for long.

Many loans bankers in Asia think that already-low margins could fall further over the next few months, encouraging banks and companies to turn back to the loan market for a big chunk of their funding. Lower margins squeeze banks’ profits, of course, but they will be welcomed if ...

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