Ample liquidity to keep loan spreads tight in Asia, says ING

Lending margins will remain compressed in Asia for the next six to 12 months, said Mark Newman, the chief executive of ING Commercial Banking Asia.

Spreads between cost of funds and lending rates were generally tighter in Asia than Europe, Newman said, because of the flush of liquidity, as financial institutions in the region were not as severely affected by the financial crisis and local banks were lending aggressively to build their businesses.

via Business feed http://www.scmp.com/business/banking-finance/article/1193288/ample-liquidity-keep-loan-spreads-tight-asia-says-ing