Standard & Poor's revealed that the view of banks around the world is still negative, not only due to the emerging Coronavirus, but also due to the shock of oil prices. Indicating that the full impact on banks will emerge at the end of the year, with expectations of sustainable growth in the long term soon.
The agency announced that its negative outlook for banks in the world is due to the expected negative impact of the Coronavirus, and the potential long-term impact on the profitability of banks. Indicating that it has taken about 212 credit rating measures towards the banks that it covers, with the aim of clarifying the impact of the emerging Coronavirus and the shock of oil prices on the banking sector in the world, since the beginning of this crisis, which resulted in that 30% of the future vision of banks holds a negative view.
The agency expected that the results of the impact of the Coronavirus on banks worldwide will appear in the second quarter of 2020, but it considers that the full impact of the virus on the quality of assets is likely to be evident at the end of the year.
The report showed that the majority of the agency's credit rating reduction measures came due to the oil price shock, which could weaken the operating conditions of banks or lead to a lower credit rating for countries.
Source (Al-Arabiya.net website, Edited)
