Economics
Standard Chartered's Bad Loans Reveal Cracks in Asian Economies
- Slower growth is making it harder to pay back debt obligations
- Rising leverage from India to Indonesia points to risks
Pedestrians walk past the entrance to Standard Chartered's headquarters in London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
As China’s growth sputters, the troubles at Standard Chartered Plc are another bad omen for what were once Asian economic darlings.
The bank, which generates most of its income in the region, had gambled on success in emerging markets such as India, which instead saddled the lender with delinquent loans. As a result, the company which opened its offices in Mumbai under Queen Victoria is now axing 15,000 jobs and is asking investors for $5.1 billion.