Pakistan’s banking sector has a stable outlook for the next 12 to 18 months, according to Moody’s Investors Service.
Moody’s Senior Vice President Constantinos Kypreos stated:
“The sovereign credit profile has improved in recent months, benefiting the banks through their high exposure to government securities, which account for around 40% of their assets.”
While Moody’s highlighted successes as Pakistan kept its exchange rate stable since mid-2019, the Senior Vice President also noted:
“Operating conditions for Pakistan banks, although gradually improving, remain difficult amid tight monetary conditions – with the policy rate at 13.25% – and large government borrowing needs crowding out funding for the private sector.”
sovereign underpin our stable outlook for the Pakistan banking system over the
next 12-18 months.
pic.twitter.com/56bbnujueh—
Moody's Investors Service (@MoodysInvSvc)
6, 2020 charset="utf-8">
Moody’s Senior Vice President Constantinos Kypreos stated:
“The sovereign credit profile has improved in recent months, benefiting the banks through their high exposure to government securities, which account for around 40% of their assets.”
While Moody’s highlighted successes as Pakistan kept its exchange rate stable since mid-2019, the Senior Vice President also noted:
“Operating conditions for Pakistan banks, although gradually improving, remain difficult amid tight monetary conditions – with the policy rate at 13.25% – and large government borrowing needs crowding out funding for the private sector.”
sovereign underpin our stable outlook for the Pakistan banking system over the
next 12-18 months.
pic.twitter.com/56bbnujueh—
Moody's Investors Service (@MoodysInvSvc)
6, 2020 charset="utf-8">