A report issued by Standard & Poor's Global Ratings Agency showed that the Coronavirus crisis will cost banks around the world $2.1 trillion in loan losses by the end of next year.
Standard & Poor expected that loan losses this year will reach $1.3 trillion, which is more than twice the level of 2019. The agency suggested that about 60% of these losses are in the Asia Pacific region, although the largest relative increases will happen in North America and Western Europe.
It is expected that the share of Asia and the Pacific from these losses will be 1.2 trillion dollars in 2021, three-quarters of which are from China, where the size of the Chinese banking system in terms of customer loans is equal to the size of the American, Japanese, German and British banking systems together, and it plays a more important role than it in pumping credit into the economy.
Source (The Economic Bulletin site, Edited)
