Large global banks prepared to weather pandemic; Latin American banks’ asset quality at risk

Original publish date: September 23, 2020Inside this episode:Peter Nerby and Michael Rohr of the Banking team discuss how global systemically important banks entered the coronavirus crisis with healthier balance sheets, capital and liquidity than before the last global downturn (begins at 8:14). Ceres Lisboa explains how Latin American banks risk a sharp deterioration in asset quality as payment deferrals and government aid lapse (begins at 2:05).​Related content:Banks – Latin America: Coronavirus resets economies at lower base driving asset risks in 2020 and beyond - Banks face uneven effects of pandemic as contagion continues. Deferrals and government aid help but asset risks are rising. Reserve buffers are only adequate to absorb a mild loss scenario. Banks – Global: Biggest banks are better set to withstand COVID-19 stress than banks as a whole - The 30 global systemically important banks (G-SIBs) are better prepared to withstand the adverse effects of the COVID-19 pandemic than the universe of Moody’s-rated banks as a whole. BAC, CS, JPM, MS and UBS: Stable wealth-management arms of largest Swiss and US banks are a credit positive offset to COVID-19 disruption - We compare the wealth management divisions of the five largest global investment banks (BAC, CS, JPM, MS and UBS) rated by us and assess their prospects for the future. Moody’s Banking Series - ​​The Series digital program is free and offers exclusive interviews, thematic panel discussions and regional deep dives.​