Banks in Singapore, China, and Hong Kong saw a significant increase in counterparty credit risk (CCR) weighted assets in the first quarter of 2026. Singaporean lenders experienced the sharpest rise, reaching a four-year high.
The rise in counterparty credit risk assets indicates increased exposure to potential defaults in financial transactions, potentially signaling higher systemic risk within the Asian banking sector.
Banks in Singapore, China, and Hong Kong have reported a widespread increase in risk-weighted assets (RWAs) related to counterparty credit risk (CCR) during the first quarter of 2026. Notably, Singaporean banks experienced the most significant rise, with their aggregate CCR RWAs reaching a four-year high. The total for Singaporean lenders climbed by 16% to S$30.6 billion, equivalent to $23.7 billion. Following this trend, Chinese banks saw a 12.5% increase in their CCR RWAs, totaling 747 billion yuan, or approximately $108 billion.