Negative outlook on Asia-Pac banks

Banks’ profitability will fall because they are raising credit provisions while central banks are cutting interest rates to support economic growth, said Moody’s vice-president and senior credit officer Eugene Tarzimanov

SINGAPORE: Moody’s Investors Service’s outlook for the banking industry in Asia-Pacific is negative over the next 12 months as the US-China trade dispute will weaken economic and trade activity in the region and erode investor confidence.

“Weaker economic and trade conditions will lead to moderate increases in problem loans for Asia-Pacific banks, ” said Moody’s vice-president and senior credit officer Eugene Tarzimanov.