Over 20 years after Asia debt crisis, McKinsey sees signs of a repeat

McKinsey examined the balance sheets of more than 23,000 companies across eleven Asia-Pacific countries, and found firms in most of Asia face 'significant stress' in servicing debt obligations

More than two decades since the Asia debt crisis gripped the region, global consulting firm McKinsey & Co is warning that signs of a rerun are “ominous.” 

Increased indebtedness, stresses in repaying borrowing, lender vulnerabilities and shadow banking practices are some of the concerns cited by McKinsey in an August report. Whether building pressures are “enough to trigger a new crisis remains to be seen” but governments and businesses need to monitor potential causes, authors Joydeep Sengupta and Archana Seshadrinathan wrote. 

McKinsey’s warning shot comes as a slowing global economy puts pressure on earnings at Asian companies, and the US-China