The eurozone financial crisis has had only a limited impact on Asia, and in fact has created opportunities for Asian banks, according to a top IMF official.
Anoop Singh, the International Monetary Fund's Asia director, said that if the eurozone plunged into recession, it would definitely hurt Asia, where exports to Europe are an important driver of growth.
"In India as in other economies demand for exports would certainly be hit."
But Singh said that in the financial sector, the weak European banks' cutting lending in Asia has not been very damaging.
"My sense so far is that the financial effects on Asia are being contained."
"So far my sense is that there are increases in funding costs, yes, for India and other countries, but the supply (of financing) is generally being maintained."
"We are seeing Asian banks, Indian banks stepping in where deleveraging is taking place in European banks."