The quality of assets will deteriorate very quickly in 2021 and beyond, because of the impact of Covid-19 on households and businesses, added to the maturity of temporary debt easing measures, the agency said. rating in a recently released press release, stressing that the most plausible scenario is the active recovery of loans to large companies, thus avoiding the increase in bad loans, reports L’Opinion.
“The recovery of profits will be slower for South African banks,” predicted the international rating agency. Added to this omen are funding and liquidity, which will remain generally stable, and deposit growth, which will remain strong.
On the other hand, currency liquidity risks have not materialized especially in Nigeria, however, they pose a major threat to bank ratings. In addition, 50% of bank ratings covered by Fitch have a negative outlook, “against 35% a year ago”. These prospects “reflect either the fact that the sovereign is on the negative outlook, or an autonomous weakness, generally around the capital”, underlined the agency.
As a reminder, the outstanding amount of overdue loans held by banking establishments in Morocco, during the month of October, was further increased by 670 million dirhams, compared to the month of September. Thus, the portfolio of bad debts held by the banks at the end of October 2020, reached 79.69 billion dirhams, up by more than 10 billion dirhams in one year. Added to the total outstanding bank loans of 936 billion dirhams, the rate of bad debts in the banking sector reached at the end of October 2020, 8.53% against 7.6% at the start of the year. The increase in these assets concerns loans to businesses and households.
–
