Asia's Rising Interest Rates Boost Banks -- but Risks Grow for 2023, China, Japan Set to Join the Race

Lenders in Japan and China lag peers enjoying fatter borrowing margins

Banks across Asia are profiting from the global trend toward tighter monetary policy to fight inflation -- with two big exceptions.

The U.S. Federal Reserve's repeated interest rate rises this year set the tone for many Asian central banks, with the notable exceptions of China and Japan -- although a recent policy shift by the Bank of Japan has appeared to signal tightening is on the way there too. As a result, lenders in the region's two biggest economies are not enjoying the kind of fatter borrowing margins seen elsewhere.