<\/p>\n
The risk to asset quality of banks in emerging markets (EM) is generally receding from peaks during or before the COVID-19 pandemic, supported by macroeconomic factors, said Moody’s Rating.<\/p>\n
It said in a note that EM banks have generally adequate buffers against credit losses, which include pre-provision profitability, credit reserves and capital.<\/p>\n
“The buffers are highest in Indonesia, Malaysia, Mexico, Peru and Qatar; they are lowest in Egypt, Colombia and Vietnam, mainly because of capital weaknesses,\u201d it said.<\/p>\n
The credit ratings agency pointed out that the risk to the asset quality remains high in Egypt, Nigeria and Turkiye.<\/p>\n
Moody’s Rating said the report focused on banks in 16 large EM countries; in Asia, it focused on China (A1; negative), India (Baa3; stable), Indonesia (Baa2; stable), Malaysia (A3; stable), Thailand (Baa1; stable) and Vietnam (Ba2; stable).<\/p>\n
On the other hand, Moody’s Rating maintained the view that property-related loans (excluding mortgages) could weaken the credit strength of banks in China, Qatar, South Africa and Vietnam, as could small and medium-sized enterprise (SME) loans in Brazil, Malaysia and Thailand, among other factors.<\/p>\n
It said SME loans made up about 20 per cent of gross loans in Brazil, Malaysia and Thailand.<\/p>\n
“While this segment is diversified in terms of economic activity, SMEs are inherently more vulnerable to periods of weak economic activity and high inflation, compared with large corporates.<\/p>\n
“Although loans to SMEs are often backed by collateral such as property, there is the risk that collateral values suffer steep haircuts in periods of economic turmoil,” it said.<\/p>\n
Moody’s Rating<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
The risk to asset quality of banks in emerging markets (EM) is generally receding from peaks during or before the COVID-19 pandemic, supported by macroeconomic factors, said Moody’s Rating. It said in a note that EM banks have generally adequate buffers against credit losses, which include pre-provision profitability, credit reserves and capital. “The buffers are […]<\/p>\n","protected":false},"author":1,"featured_media":1838,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Money-48-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Money-48-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Money-48-300x208.jpeg",300,208,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Money-48-scaled.jpeg",2560,1774,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1837"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1837\/revisions"}],"predecessor-version":[{"id":1839,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1837\/revisions\/1839"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1838"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}