Stress testing loan portfolios in times of crisis

Stress testing loan portfolios in times of crisis

Credit risk trends facing the Financial Services industry in 2020

1000
business man

Credit risk trends facing the Financial Services industry in 2020

Paper 2, February 2020

Loan portfolios may be abruptly impacted due to the coronavirus outbreak, which could lead to correlated increases in default risk, higher provision rates, and an overall increase in credit risk. Although specific guidance on targeted stress tests due to the outbreak has not been issued by the HKMA, we would recommend banks to run targeted stress tests to identify vulnerable credit, sectors and supply chains, and then take proactive action.

© 2024 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in Chinese Mainland, KPMG, a Macau (SAR) partnership, and KPMG, a Hong Kong (SAR) partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

The KPMG name and logo are trademarks used under license by the
independent member firms of the KPMG global organisation.

For more detail about the structure of the KPMG global organisation please visit https://kpmg.com/governance.

京ICP备12028186号-1
京公网安备11010102003233号

Connect with us