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.

The Asia Pacific banking sector will benefit from the improving global and regional economic conditions in 2018. Overall, better asset quality is expected, and banks will maintain relatively stable profitability and capitalisation. Nevertheless, there are growing concerns over the potential asset price corrections, high private debt, and geopolitical risks.

De-risking has proved to be more than the exiting of businesses for Asia Pacific’s trade finance industry. A strategic shift is underway which might just change the nature of trade finance for years to come.

Innovations emerging from East and West African banking hubs are enabling the sector to take a lead in reaching Africa’s unbanked population but much remains to be done.

Remittances slowed in 2014 mainly due to exchange rate volatility, as remittances are reported in US dollars.

China’s economy grew faster than expected at the start of the year but it remains to be seen if it signals a solid recovery trend as the crisis-hit property sector bears down on growth