blog Market Intelligence /marketintelligence/en/news-insights/blog/key-credit-risk-factors-when-assessing-banks-in-the-context-of-covid-19 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Key Credit Risk Factors When Assessing Banks In The Context Of COVID-19

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

Industries Most and Least Impacted by COVID-19 from a Probability of Default Perspective – September 2020 Update

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Key Credit Risk Factors When Assessing Banks In The Context Of COVID-19


Banks across the world will inevitably face an impact on creditworthiness through 2020 as a result of the significant effects of the coronavirus pandemic, oil price shock, and heightened market volatility. This report highlights how to monitor credit risk across banking institutions and geographies in the context of COVID-19 using S&P Global Market Intelligence Banks Scorecard.

Due to a number of factors linked directly or indirectly to COVID-19 and the oil price shock, the rated and unrated universe may see an increase in the number of defaults. The magnitude will vary by industry, geography, and rating level. According to S&P Global Ratings, the main near-term risk for banks remains asset quality; in the longer term, profitability concerns will increase compared to pre-COVID-19. It will underpin the need for further structural changes, possibly consolidation in a number of banking systems and increased regulatory scrutiny.[1]

Banks in emerging markets are often more exposed than developed market peers because of lower investor appetite and increasing funding costs for systems dependent on external financing. According to S&P Global Ratings, developed economies usually have the capacity to exercise larger and more effective support and stimulus, given their wealth and access to funding. Emerging markets have less room for policies to cushion the economic hit; in some extreme cases, their access to funding is limited.[2] 

In this context, we believe that proactive monitoring of quantitative and qualitative risk factors using our Banks Scorecard can help to understand and assess the rising credit risks associated with this pandemic. We have also, for the purpose of this paper, drawn on assessment rationales and discussions developed by S&P Global Ratings to reflect the impact of COVID-19 on banks, globally.

Credit Assessment Scorecards

S&P Global Market Intelligence’s Credit Assessment Scorecards provide the framework which gives access to credit risk benchmarks and attribute-driven scoring guidelines in an easy-to-use, intuitive structure designed to score rated and unrated banks.

Our Scorecards undergo a rigorous annual validation process to test their predictive power. Scorecard numerical outputs leverage S&P Global Ratings’ criteria and are further supported by 35+ years of historical default data[3]. Additionally, each Scorecard can be adapted to your own internal scale.

Source: S&P Global Market Intelligence. For illustrative purposes only.

[2] Coronavirus Impact: Key Takeaways From Our Article, S&P Global Ratings. Date: 03 April 2020

[3] S&P Global Ratings does not contribute to or participate in the creation of credit scores generated by S&P Global Market Intelligence.


Read the full report
Click here