Asset-quality risk receding but remains high in several countries - Moody's Rating

KUALA LUMPUR: The risk to asset quality of banks in emerging markets (EM) is generally receding from peaks during or before the COVID-19 pandemic, supported by macroeconomic factors, said Moody's Rating.

It said in a note that EM banks have generally adequate buffers against credit losses, which include pre-provision profitability, credit reserves and capital.