Asia is facing a conundrum: its appetite for funding is increasing just as bank lending from historically liquid continents is shrinking. Strong domestic demand is augmenting company expansion, helping to prop up and stimulate the region’s continued industrial growth and economic development, which, although slowing, remains enviable. Meanwhile, the continued fallout from the global financial crisis and the ensuing eurozone debt problems are having knock-on effects on the availability of funding in the region. Many European and US banks are leading an industry-wide retreat to their home markets, scaling-back billions of dollars of funding to companies in Asia. However, Falcon Group CEO, Will Nagle writes for gtnews that the withdrawal of global banks from the emerging markets is not all bad news for corporates in Asia, as both regional banks and alternative providers have established a position to fill this space.
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