EM Banks: Funding fresh credit looks most challenging in these markets
National Bank of Kuwait: Hold
Bank Muscat: Buy
Across the world, banks are being asked to take on much of the burden of easing the pain of Covid-19 lockdowns, by offering loan maturity extensions, interest holidays and cheaper credit. For our coverage universe, the average level is 74%. Other things being equal, banks in the top-right quadrant could be most affected in an environment where loan commitments are being drawn down and deposits are being withdrawn.