Refinancing risk for non-bank financial institutions (NBFIs) in emerging Asia-Pacific markets is projected to increase to $758 billion in 2026, up from $708 billion in 2025, according to Fitch Ratings. Despite this increase, the agency notes that the associated risks should remain manageable.
This resilience is expected to be sustained by sufficient domestic liquidity, dependable access to bank financing, and, for many institutions, robust backing from corporate shareholders or governments. Fitch pointed out that domestic banks continue to be the primary funding avenue for most rated NBFIs in these emerging economies, complemented by local bond markets. Consequently, local banking-system liquidity and prevailing monetary policies will remain crucial in shaping overall refinancing conditions.
Overall, Fitch anticipates that most rated APAC emerging-market NBFIs will maintain adequate access to refinancing and stable funding conditions. However, the agency cautioned that vulnerabilities could arise from an unexpected tightening of domestic liquidity, fresh upward pressure on US dollar yields, or broadening credit spreads that could restrict offshore market access for lower-rated issuers.
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