Authorities in East Asia Pacific (EAP) jurisdictions have adopted a battery of fiscal, monetary, and financial measures aimed at mitigating the unprecedented impacts of the Coronavirus disease 2019 (COVID-19) pandemic on the economy. This report discusses the quality of loan portfolios in the banking sector of EAP jurisdictions and the main vulnerabilities surrounding credit markets that may negatively impact the credit quality of banking portfolios and amplify the effects of the COVID-19 crisis. Most EAP countries entered the pandemic with solid capital and liquidity buffers built up following the global financial crisis (GFC). If non-performing loans (NPLs) are left unaddressed, they can have harmful feedback effects on the banking system and the real economy. Experiences in the aftermath of the Asian financial crisis (AFC), and more recently the GFC, show that many countries were affected by a legacy of high NPLs, which underscores the need for a quick and comprehensive policy response.