SMEs, real estate to drive asset quality deterioration in India, China: S&P

Emerging markets face slippage, volatile capital flow risks

Topics
SMEs | MSMEs

Abhijit Lele  |  Mumbai 

Against the backdrop of the Coronavirus (Covid-19) pandemic and its aftermath, small and medium enterprises (SMEs) will lead asset-quality deterioration, particularly for countries like Turkey, South Africa, India, China, Indonesia, and Thailand. Tourism and export-oriented SMEs are more vulnerable in this challenging environment, according to rating agency Standard and Poor’s (S&P).

Apart from SMEs, real estate is another source of asset quality pressures for banks in emerging markets. However, the immediate risks appear manageable, S&P said. Stress in Indian SMEs is ...

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First Published: Wed, January 20 2021. 12:43 IST
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