The study tracks the evolution of 88 different banking systems
According to S&P Global, global banks are forecasted to face credit losses of nearly $2.1 trillion by 2021 due to the pandemic. In fact, $1.3 trillion are accounting for this year alone, more than doubling the 2019 level.
The study predicts that credit losses will consume at least 75% of the earnings generated by the world’s top 200 banks in 2020. Nevertheless, the percentage could ease to around 40% during 2021.
Asia-Pacific banking systems are expected to face credit losses of $1.2 trillion over 2 years.
As to North America, the report forecasts credit losses of $366 billion by 2021. This compares with losses of just $63 billion in 2019.
Besides, Western European banking systems are anticipated to face credit losses of $228, compared to $54 billion in 2019.
Latin America is expected to lose $131 billion over two years with the bulk of these from the region’s largest economies, Brazil ($75 billion) and Mexico ($18 billion).
Meanwhile, S&P Global forecasts credit losses of $142 billion for banking systems in Central and Eastern Europe and the Middle East and Africa. $40 and $27 billion related to the Russian and Turkish banking systems, whereas $23 billion go to Gulf Cooperation Council (GCC) countries.
We’ve reported that Opera intends to acquire Lithuanian-based Fjord Bank subject to regulatory approval. The purchase will allow Opera to further accelerate its fintech operations across Europe.