The Covid-19 pandemic first appeared in the Chinese city of Wuhan at the beginning of last year before spreading throughout the world. Although some countries in Asia, most notably India, have been hit hard by the virus, the majority have not. Indeed, China recovered very quickly, thanks to a distinctly robust response. Other Asian countries, such as Singapore, Taiwan and Vietnam have also fared well compared to those in Europe and the Americas, where the virus has had the greatest impact overall.
The difference in infection levels and the effectiveness of Asian government responses to the pandemic have not only preserved lives, but also helped to protect national economies. In this context, it is therefore no surprise that over the past year, many banks in Asia have enjoyed high levels of liquidity thanks to increased deposit growth, slow credit growth and concerted action from Asian central banks.
