Moody's said since the second half of 2011 a slowdown in Asian exports, general weakness in Asian currencies and anecdotal evidence of European banks selling their portfolios of Asian loan books were contributing to vulnerability. - File photo

SYDNEY: Europe's sovereign debt crisis poses a threat to Asia-Pacific banks, along with the risk of a hard landing in China and a downturn in property or commodity prices, Moody's Investors Services said on Monday.

Moody's said that while banking systems in the Asia-Pacific remain generally resilient, banks in Australia, New Zealand, Korea and Vietnam are the most exposed to the continued uncertainty in Europe and will be the worst affected should conditions deteriorate.

“The sovereign crisis in the euro area has increased the threat of a contagion in Asia and is the greatest risk to the generally robust credit profiles of Asia Pacific banks,” Moody's said in a statement.

Moody's said since the second half of 2011 a slowdown in Asian exports, general weakness in Asian currencies and anecdotal evidence of European banks selling their portfolios of Asian loan books were contributing to vulnerability.