The US Net International Investment Position (NIIP) has posted a deteriorating trend for over a decade now, raising concerns of the financial condition and creditworthiness of the US as a habitual debtor nation

Household indebtedness has been on the rise, which is putting future economic growth and financial stability in jeopardy. Thus, many central banks have unveiled measures to curb high household debt. In Asia Pacific, Australia and South Korea are facing the most serious household debt problems.

With 41% of China's $45 trillion in banking assets and 27% of its $30 trillion in loans exposed to the property market, authorities are likely to initiate an orderly distribution of distressed assets of real estate developers such as Evergrande that failed to meet the “three red lines” limit on debt liabilities. Leveraged expansion sabotaged Evergrande’s sustainability while profit from property development shrunk for three consecutive years.

Most of Asia Pacific witnessed a slight slowdown in SME loan growth in 2023, but the regional average increased marginally, led by Australia, while concerns remain over SME loan quality, notably in Thailand

From 2019 to 2023, the share of consumer finance relative to total retail lending declined in Hong Kong and South Korea, but increased significantly in the Philippines.