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Graying Asia: How Aging Is Reshaping Banking

Author

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  • Haibo Li
  • Estelle X Liu
  • Yinqiu Lu
  • Anne Oeking

Abstract

This paper explores how demographic shifts, particularly population aging, are reshaping banking in Asia-Pacific’s bank-dominated financial systems. Using household surveys as well as bank-level and country-level panel data, we show that aging populations are associated, with shifts in bank portfolios away from traditional loans (with lower loan-to-deposit and loan-to-asset ratios), driven by changes in households’ financial behavior. These changes affect banks’ funding structures, profitability, and risk profiles, with implications for financial stability. We also provide new evidence on cross-border dynamics, showing that demographic divergence spurs asset reallocation toward younger economies. Our findings highlight evolving risks and supervisory challenges as demographic transitions unfold unevenly across economies.

Suggested Citation

  • Haibo Li & Estelle X Liu & Yinqiu Lu & Anne Oeking, 2026. "Graying Asia: How Aging Is Reshaping Banking," IMF Working Papers 2026/150, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2026/150
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