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Moody's Investors Service said the bank capital will moderately fall in emerging Asia over the next two years, with India seeing larger capital decline without further infusion
Report's highlights
- Non-performing loans (NPLs) will rise most for banks in India and Thailand because of the greater shock to their economies and historically poor performance of certain loan types.
- In India, stress among non-bank financial institutions will also curtail their capacity to lend.
- The 2021 outlook for banks in emerging markets is negative, while the outlook for insurers is stable.
- In the Asia Pacific region, banks’ rising nonperforming loans and insurers’ volatile investment portfolios are in focus.
- The uncertain trajectory of asset quality is one of the biggest threats for emerging market banks, as operating conditions remain challenging amid the current health crisis
Moody's Investors Service
- Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name.
- Moody's Investors Service provides international financial research on bonds issued by commercial and government entities.
- Moody's, along with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies.
- The company ranks the creditworthiness of borrowers using a standardized ratings scale which measures expected investor loss in the event of default.
- Moody's Investors Service rates debt securities in several bond market segments.
- These include government, municipal and corporate bonds; managed investments such as money market funds and fixed-income funds; financial institutions including banks and non-bank finance companies; and asset classes in structured finance.
Source: The Hindu
