Coronavirus

NZ banks' credit losses to rise to 12x 2019 level - S&P

Jenny Ruth
Fri, 10 Jul 2020

New Zealand banks' credit losses will rise to about 12 times those in 2019 before easing because of the coronavirus crisis, according to international ratings agency Standard & Poor's. "A contracting economy, rising unemployment and weak consumer and business sentiment will affect banks' asset quality metrics," said S&P analyst Lisa Barrett in an S&P publication on global banks. "We forecast that annual credit losses will peak at about 80 basis points of gross loans by fiscal 2021, about 12 times their historical low in fiscal 2019," Barr...

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