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Should governments cut too far at a time when consumer spending and investment is yet to sufficiently recover, growth could quickly stagnate. Links of London would further dent the operating outlook for European banks and could mean more deterioration in asset quality as nonperforming loans edge higher. Emerging Asia After suffering only minor profit damage from the global financial crisis due to their strong capitalisation and less risky lending practices than in the US and Europe, Asian banks are now increasingly positioning for growth. The well capitalised nature of the region’s banking sector is the main reason Links of London Black And Gold Friendship Bracelet banks are now in a position to expand their loan books and support domestic economic growth, and with the exception of Japan we continue to forecast solid equitytoasset ratios preventing any major banking sector dislocation, even if property bubbles across the region continue to inflate and burst in . Despite the limited crisis risks we remain concerned that profitability will take a significant hit once hot money inflows into Asia slow down. Latin America Thanks to prudential regulation and a lack of crossborder lending few banking sectors in Latin America face systemic risks, even with Links of London Black And Orange Friendship Bracelet wave of foreign capital entering the region. We believe that over the longterm time, Peru offers the greatest potential in the region for commercial banking sector expansion, followed by Mexico and Guatemala. Emerging Europe Our outlook for the emerging Europe banking sector is mixed, reflecting the divergent growth trajectories that we forecast for the region. We have long highlighted Turkey and Poland as economic outperformers in the region, with domestic demand driving rapid economic convergence with Western peers. We highlight Hungary and Romania as two countries where Links of London Black Friendship Bracelet outlook for the banking industry is negatively affected by domestic economic conditions. Middle East and North Africa That a significant share of lending throughout .MENA was directed towards the real estate and construction sectors, particularly in Bahrain .