Singapore - Four South-East Asian countries face a negative industry outlook for their banking systems amid the global economic slowdown and rising inflation, said Moody's Investor Service in a report issued Friday.

Singapore, Malaysia, Indonesia and Vietnam are in for volatile times, said the annual Asia Banking Outlook.

Bank asset quality may deteriorate across the region, said Thomas Byrne, a senior vice president.

He noted that South-East Asian banks have not been directly affected by the spread of the US credit crunch.

The key concern for the region is still rising inflation, and central banks are likely to use monetary policies to rein in the rising prices of goods, rather than spur loan expansion, Moody's said. (dpa)