ABSTRACT
Asia’s financial system is bank-centric. The bulk of financial intermediation in almost all major Asian economies has been done in the form of bank financing. Figure 13.1 shows that the share of domestic bank credit to total domestic debt financing, which include both bank loans and bond issuances, is around 60%–80% in many Asian economies as of the end of 2014. Therefore, it is crucial to understand the activity of banks in the region and potential risks they may pose.
