Asean banks see rising asset risks on Covid-19 virus surge, but credit strength will remain intact

KUALA LUMPUR/BANGKOK, Aug 10 (Bernama): For banks in Asean countries and India, Covid-19 outbreaks triggering strict containment steps will impede economic recovery and erode borrowers' debt repayment capacity, increasing their asset risks, Moody's Investors Service said in a new report.

However, banks' strong loss-absorbing buffers, policy support and the virus impact focused on a few segments will keep their credit strength intact, it said in the first report of a series covering the impact of fresh coronavirus waves on banks in Asean countries and India.