Mumbai: The novel Coronavirus ( nCoV) outbreak can hit economies of the Asia- Pacific region if it prolongs, and the impact will be more pronounced on banks with poor profitability and asset quality, rating agency Moodyu2019s has said.
Moodyu2019s, in a note on Wednesday, warned that the larger impact on regional economies will be visible through poor bank profitability and worsening asset quality because of the impact the hit on travel and tourism, consumption, commodity prices and supply chain disruptions will have on banks.
u201c If the outbreak of the coronavirus outbreak intensifies and the disruptions stemming from it are not contained in the next few months, it will hurt the asset quality and profitability of banks in the Asia- Pacific region,u201d Moodyu2019s warned.
On travel and tourism, the note said as people travel less, economic growth and employment conditions will weaken in these economies in general and those dependent on foreign travellers in particular. u201c This will hurt banksu2019 asset quality,u201d it said. A gencies u2018 Banks to take maximum hit if nCoV crisis prolongsu2019 u2018 The coronavirus is an extremely serious threat to our people and our economy. My sense is the government is not taking this threat seriously. Timely action is criticalu2019 Rahul Gandhi, Congress MP Moodyu2019s says prolonged outbreak will hit economies of the Asia- Pacific region. representation pic/ afp
