A worsening in property-sector stress is the key risk stalking the Asia-Pacific financial institutions sector in 2024. "Asia-Pacific banks are managing property sector risks and the vast majority have stable rating outlooks," said S&P Global Ratings credit analyst, Gavin Gunning. "We see limited upside ratings potential, given persistent property sector risks, higher-for-longer interest rates and weaker economic growth. More so, if downside risks emerge in property or other areas, it could be tougher for banks to maintain outlooks at current levels."