Global ratings agency S&P Global Ratings has said that banking systems in emerging markets like India, Mexico and South Africa will see a slower recovery to the 2019 levels and full recovery might not be possible before 2023. S&P’s latest report, ‘Global Banking: Recovery Will Stretch To 2023 And Beyond’, cites that both COVID-19 and the oil price shock of 2020 have taken a heavy toll on global banks. “S&P Global Ratings has taken 335 negative rating actions globally since the outbreak began, and we anticipate it will be difficult for the financial strength ratings on financial institutions to return to pre-crisis levels. We don’t expect the world’s largest banking sectors, including more than half of G20’s, to recover to pre-COVID-19 levels until 2023, or beyond,” the rating agency said. S&P said it has already negatively revised the economic or industry trends underpinning the financial strength of many banking jurisdictions globally. “This trend should persist,” it added. Even many prominent banking systems may not recover until 2023, including the US, UK, France, Germany, Spain, Italy, Japan, Australia, Brazil, Indonesia, and Russia.

(Business Today)