Moody’s: Bank failures have limited impact on banks in developing countries

The international credit rating agency Moody’s reported that the impact of bank failures in the US on banks in developing countries is expected to be limited.

Regarding the repercussions of failing US banks on emerging markets, the credit rating agency said: “We expect the direct negative impact of developments on banks in emerging economies to be modest, manifested primarily due to secondary effects such as volatility in local financial assets. and currencies and tightening of financing conditions”.

‘CHANGED SITUATION’

“While the situation in global capital markets remains highly volatile and unpredictable, structural financing forces and liquidity buffers will help protect banks in emerging economies from unexpected events,” the statement said. (AA)