Asia must guard against another financial crisis, Philippines central bank chief says - Reuters

The Philippines' central bank governor has urged Asian economies to remain vigilant against the risk of another financial crisis, according to Reuters. His caution reflects a broader concern among regional policymakers that the same vulnerabilities which amplified past downturns — heavy foreign-currency borrowing, stretched asset valuations and sudden shifts in global capital flows — can resurface when external conditions tighten.

The remark carries weight because Asia's economies are deeply integrated into global trade and dollar funding markets. When major central banks adjust interest rates or global risk appetite changes, capital can move quickly across borders, pressuring currencies and local asset prices. The 1997 Asian financial crisis remains a reference point for how swiftly such dynamics can escalate.

For markets, the signal is less about any single economy and more about the policy backdrop: authorities appear focused on building buffers, monitoring leverage and coordinating regionally. What to watch includes regional foreign-exchange reserves, external debt levels and how central banks respond if global financial conditions tighten.