- HM Treasury announces range of financial support for jobs and businesses
- FCA highlights continuing support for consumers struggling with payments
- UK Finance highlights over 1.4 million businesses supported through COVID-19 lending schemes
- Lenders continue to support customers through COVID-19
- BIAN poll indicates impact of COVID-19 on prioritising digital transformation initiatives
- PayPal launches new service to enable customers to buy, hold and sell Cryptocurrency directly from their account
- deVere Chief Executive says "Bitcoin hits $12,000 on Paypal move: Time is up for Bitcoin deniers" expired
- SIA signs partnership agreement with Hex Trust in digital asset custody infrastructure expired
- UK Finance comments on Which? response for legislation on APP scams expired
- UK Finance responds to introduction of Financial Services Billl expired
- ConnectPay discusses de-risking and risk control expired
- Moneyfacts says inflation increases to 0.5% as fixed rates rise expired
25th September 2020
Moody's comments on global banks outlook
The outlook for global banks turned overwhelmingly negative in early 2020 as the pandemic struck and restrictions on economic activity began to bite. Over three-quarters of 70 Moody’s Banking System Outlooks are now negative, which contrasts with the 14% that were negative at the end of 2019.
However, after ten years of broadly benign economic conditions, and relentless regulatory pressure to reinforce balance sheets, most banking systems are in good shape and can withstand the inevitable rise in bad debts over the coming months.
“In contrast to the financial crisis, the banking system is more likely to act as a shock absorber rather than an amplifier,” says Nick Hill, Managing Director, Banking at Moody’s Investors Service. “But a second wave of the pandemic that leads to new lockdowns and economic turmoil could cause more lasting damage to banks’ credit profiles.”
The ability to preserve and restore capital in the medium term will be a crucial support to banks’ creditworthiness, Moody’s Investors Service said in a report this week.
Moody's Trends(42 articles)