Standard & Poor's Ratings Services on Feb 26 announced it will maintain its "stable" outlook on banks in the Chinese mainland, Hong Kong and Taiwan.

In the mainland, a slowdown in economic growth will continue to test banks' asset quality and profitability, while banks in Hong Kong and Taiwan should benefit from a more-visible economic improvement, it said.

The international rating agency expects the loan quality and profitability of the mainland's banking sector to slip further in 2013 because of a weakened export sector and overcapacity in certain industries.

It warned that the banking industry's exposure to debt-laden local government financial platforms also remains a risk.

"In addition, the ongoing liberalization of interest rates is likely to put pressure on banks' net interest margins and profitability. Nonetheless, banks' stand-alone credit profiles underpin our stable outlook on the sector."

Better economic growth will likely support the steady performance of Hong Kong's banking industry, while steep property prices will continue to test banks' ability to manage their high exposure to the property sector, S&P said.

Banks in Taiwan will benefit from mild economic growth, ample liquidity, and low interest rates, but the banking sector’s overseas credit exposure is rising, and this could increase banks' susceptibility to ongoing global economic volatility, it said.