Virus Seen Adding $100 Billion to Asian Bank Credit Costs
- S&P estimates $211 billion in lost company, household incomes
- Firm cuts 2020 growth forecast for Asia-Pacific region to 4%
This article is for subscribers only.
The coronavirus outbreak will add $100 billion in credit losses to banks in the Asia-Pacific region this year with Chinese lenders bearing the brunt of the damage, according to S&P Global Inc.
“Some activity will be lost forever,” Shaun Roache, S&P’s Asia-Pacific chief economist, wrote in a note on Tuesday. “We estimate an income loss of about $211 billion, which will blow a hole in balance sheets across the region.”