[Sino-U.S. Trade War] Affected by Trade War, Moody's Drops Banks in Asia Pacific to "Negative"

Financial news

Written by: Zhang Weilun

2019-12-10 08:00

Moody's latest report points out that due to the Sino-US trade war, the outlook for the Asia-Pacific banking industry in 2020 is expected to be "negative". It is also expected that the region's economic and trade activities will weaken, investor confidence will decline, and the trade war will slow down GDP growth, leading Non-performing loans of banks in the region rose moderately.

The bank also pointed out that with the increase in credit reserves and the central bank's interest rate cuts to support economic development, dragging down bank profitability; the high leverage of the private sector has brought risks to the region's economy. The bank expects the trend to increase leverage will slow.

Earlier, Moody's has lowered its global banking rating outlook from "stable" to "negative" because of the continuing trade war situation.

Moody's Local Banking