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Binary_Bark
Forging
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- Feb 24, 2016
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Johannesburg – Moody’s Investors Service have changed their outlook for African banks in 2020 to negative from stable, reflecting their weakening operating environment.
This weakening is due to sluggish global economic growth with negative business sentiment and trade uncertainty clouding growth prospects.
In Africa, government debt is high and gross domestic product (GDP) growth will remain below potential and insufficient to boost per capita income levels or increase economic resilience.
“Weakening operating conditions are pressuring governments' credit quality leading to a knock-on effect on banks through reduced business generation, slower credit growth and rising asset risk,” said Constantinos Kypreos, Senior Vice President at Moody's.
Moody’s said asset risk will remain high, a result of rising government arrears, high loan concentrations, borrower friendly legal frameworks, and still evolving risk management and supervision capabilities.
More At: https://www.iol.co.za/business-repo...outlook-on-african-banks-to-negative-38946844
This weakening is due to sluggish global economic growth with negative business sentiment and trade uncertainty clouding growth prospects.
In Africa, government debt is high and gross domestic product (GDP) growth will remain below potential and insufficient to boost per capita income levels or increase economic resilience.
“Weakening operating conditions are pressuring governments' credit quality leading to a knock-on effect on banks through reduced business generation, slower credit growth and rising asset risk,” said Constantinos Kypreos, Senior Vice President at Moody's.
Moody’s said asset risk will remain high, a result of rising government arrears, high loan concentrations, borrower friendly legal frameworks, and still evolving risk management and supervision capabilities.
More At: https://www.iol.co.za/business-repo...outlook-on-african-banks-to-negative-38946844
