Most Banks in Asia Not Vulnerable to Loan Crisis in Dubai

Analysts at Citi indicated that most banks in Asia, except for Standard Chartered and HDFC, have not lent loan to Dubai extensively. HDFC and certain Japanese banks have syndicated loan exposures specifically to Dubai World and Nakheel. Chinese banks also have limited exposure to overseas market, with only BOC oriented towards the international markets.

According to Citi analysts, investors should also consider exposure to Dubai through bonds, considering a rise in CDS. Citi believes that banking markets in Hong Kong, Singapore and Taiwan are more vulnerable to the debt issues in Dubai.