• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

EM EMEA Bank asset quality to weaken as forbearance is withdrawn

5 years ago
in Banking & Finance, highlights, Home, home-news, latest News
1 min read
0 0
0
Fitch Ratings - norvanreports

Fitch Ratings - norvanreports

80
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Emerging market (EM) banks in Europe, Middle East and Africa (EMEA) region should see meaningful increases in reported nonperforming loan (NPL) ratios in 2021 with the expiration of moratoria and loan forbearance programmes, Fitch Ratings says.

Our new report What Investors Want to Know: Loan Moratoria in Emerging EMEA outlines the extent to which these banks have utilised moratoria programmes and highlights risks to asset quality as forbearance measures are withdrawn.

Impaired loan ratios saw minimal increases in most EM EMEA markets in 2020, as regulators provided forbearance to banks in respect to the classification of loans subject to moratoria, masking asset quality deterioration. NPLs have yet to increase sharply, as many forbearance measures are still in place or have only recently expired.

However, we expect NPLs to increase across the region in 2021 as the moratoria programmes roll off and the effect of forbearance on loan classification is withdrawn. Any further extensions of payment holidays would be most likely be limited to the most vulnerable sectors.

Loan moratoria programmes have been extensively used across the EM EMEA region, with significant variance in uptake levels. Utilisation has been highest in Georgia, Hungary and Nigeria (where between 40% and 60% of loans were subject to moratoria at peak levels) followed by South Africa and the UAE (each at close to 20%).

We view the risk of asset quality deterioration as most significant in Nigeria and also material in Turkey, Georgia, Hungary, South Africa, the UAE and Qatar.

Loan impairment charges increased in 2020 across all markets from the prior year as banks pro-actively increased loan provisions, which is positive for bank credit. The expected economic recovery across the region in 2021-2022 should mitigate the negative impact on the asset quality of loan seasoning following the downturn in 2020.

RelatedPosts

BoG Raises GHS 7.74bn From 56-Day Bills at 21.4% Yield

10 Most Indebted Countries as Global Debt Soars to $150 Trillion

WAFU B U17 BOYS: Black Starlets Ease Past Nigeria to Book U17 AFCON Ticket

Source: fitchwire
Via: norvanreports
Tags: Emerging market (EM) banksEurope Middle East and Africa (EMEA) regionexpected economic recoveryexpiration of moratoria and loan forbearance programmesNPLsUAE
No Result
View All Result

Highlights

UEFA Champions League: Galatasaray Shocks Liverpool, Mbappé bags Hat-trick as Real Madrid Run Riot

Finance Minister Strikes Upbeat Tone About Economy as IMF Begins Fifth Programme Review

Everything You Need to Know About CAF’s Ordinary General Assembly – Kinshasa 2025

Sinner Storms into Beijing Final as Gauff Battles Past Bencic

Alcaraz Triumphs Over Fritz in Tokyo, Secures Eighth Title of the Season

Africa’s Borrowing Costs are too High: The G20’s Missed Opportunity to Reform Rating Agencies

Trending

Bank of Ghana
Business

BoG Raises GHS 7.74bn From 56-Day Bills at 21.4% Yield

October 1, 2025

BoG Raises GHS 7.74bn From 56-Day Bills at 21.4% Yield The Bank of Ghana (BoG) has mobilised...

10 Most Indebted Countries as Global Debt Soars to $150 Trillion

October 1, 2025

WAFU B U17 BOYS: Black Starlets Ease Past Nigeria to Book U17 AFCON Ticket

October 1, 2025

UEFA Champions League: Galatasaray Shocks Liverpool, Mbappé bags Hat-trick as Real Madrid Run Riot

October 1, 2025

Finance Minister Strikes Upbeat Tone About Economy as IMF Begins Fifth Programme Review

September 30, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.