Moody's: Coronavirus outbreak would have negative impact on banks in Asia Pacific

In an adverse case, impact on banks would flow through multiple channels that involve economic slowdown, credit issues in some industries and volatility in commodity and financial markets, Moody's said in a new report released on Wednesday.
12.02.2020 15:50:21 / English News

"If the outbreak intensifies and the disruptions stemming from it are not contained in the next few months, we expect negative impact on banks in Asia Pacific through various channels," noted Eugene Tarzimanov, a Moody's Vice President and Senior Credit Officer.

Tarzimanov added that while such effects would mostly stem from macroeconomic consequences that can take many quarters to materialize, some events, such as a decline in commodity prices, could have a rapid knock-on effect on banks. (ILKHA)