Standard & Poor's Global Credit Ratings Agency revealed in a recent report that the Corona crisis will cost banks around the world losses of $2.1 trillion in loan by the end of next year.
The agency expected loan losses this year to reach $1.3 trillion, which is more than twice the level of last year, likely to be about 60 percent of those losses in the Asia Pacific region, although the largest relative increases exceeded two times on average compared to the past year will be in North America and Western Europe.
The agency revealed that the credit losses of these banks will absorb about 75 percent of their profits before allocating provisions, to improve this proportion to about 40 percent in 2021, where it is expected that the share of Asia and the Pacific of those losses will be 1.2 trillion dollars in 2021, Three quarters of it is from China, where the size of the Chinese banking system in terms of customer loans equals the size of the American, Japanese, German and British banking systems together, and it plays a more important role than it in pumping credit to the economy. According to estimates, North America’s share of the new losses will be $366 billion, Western Europe $228 billion, Eastern Europe, the Middle East and Africa $142 billion, and Latin America $131 billion.
Source (London Arab newspaper, Edited)
