The deepening oil price slump will intensify pressure on banks globally, with those in major net oil exporting countries most exposed to credit risks in the near term, said Moody's Investors Service.
In a new report on global banks' credit risks from falling oil prices, Moody's said there is a substantial risk that any price recovery may evolve much more slowly in the medium term, noting there is some risk that prices could fall even further.
The WTI crude oil traded at US$31 (about RM130) per barrel and the Brent at US$33 (about RM134) per barrel.
Last month, the ratings agency reduced its forward-looking price estimates in light of continued oversupply and tepid demand growth in global energy markets.
Moody's said in a statement it expects the credit risk for banks in regions which are net oil-exporting will increase as their direct and indirect exposures to low oil prices raise the potential for asset quality deterioration.
Still, the ratings agency said that while implications of lower oil prices for global banks' earnings and solvency appear broadly manageable, low oil prices could still test the creditworthiness of some banks across its global
rated portfolio.
"We believe the "lower-for-longer" scenario for oil prices is the base case scenario, and expect that banks in oil-exporting regions will likely see increased risk to creditors as banks adjust to this new normal," said Moody's
managing director Frederic Drevon.
Moody's noted that banks' corporate lending exposures and capital markets-related activity and exposures could drive downward pressure on their credit profiles, particularly banks in net oil exporting regions.
Moody's analysts also stressed that a decline in consumer spending or pressure on Gross Domestic Product (GDP) growth driven by low oil prices could result in pressure on banks' asset quality and earnings.
However, it said banks in countries where the oil industry is largely government-owned and are reliant on oil-related revenues might be less exposed to loan delinquencies given government support to the industry.
Bernama
Thu Feb 25 2016
![Moody's: Global banks' credit risks to low oil prices rising Moody's: Global banks' credit risks to low oil prices rising](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2015-11/51447209157_CRUDEOIL.jpg)
While implications of lower oil prices for global banks' earnings and solvency appear broadly manageable, low oil prices could still test the creditworthiness of some banks across its global rated portfolio. - AFP Photo/Files
![Jepun tamatkan amaran gempa bumi mega Jepun tamatkan amaran gempa bumi mega](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723715377_TBJapan.jpg)
Jepun tamatkan amaran gempa bumi mega
Jepun pada Khamis menamatkan nasihat risiko gempa bumi dengan magnitud yang lebih tinggi daripada biasa, seminggu selepas gegaran kuat di dasar laut Palung Nankai.
Fahmi nafi arah Google nyahaktif ciri graf penukar ringgit
Menjawab tuduhan seorang pengguna X, Ahli Parlimen Lembah Pantai itu menerusi platform sama menegaskan beliau tidak pernah mengarahkan penyedia perkhidmatan itu berbuat demikian.
![Tular rakaman CCTV, suspek pecah rumah di Sentul ditahan Tular rakaman CCTV, suspek pecah rumah di Sentul ditahan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61723715171_TBIPDSentul.jpg)
Tular rakaman CCTV, suspek pecah rumah di Sentul ditahan
Polis menahan seorang lelaki dipercayai terlibat dalam sembilan kes pecah rumah di Residensi Sky Awani 1 dan 2 di Sentul.
!['Stringer' raih banyak faedah sekiranya mencarum dengan Perkeso 'Stringer' raih banyak faedah sekiranya mencarum dengan Perkeso](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/81723710107_TBFAhmi.jpg)
'Stringer' raih banyak faedah sekiranya mencarum dengan Perkeso
Pengamal media sambilan yang mencarum dengan Perkeso akan dilindungi dan menerima banyak faedah sekiranya berlaku kemalangan ketika menjalankan tugas.
![Jemaah umrah terkandas di lapangan terbang Jeddah mahu penjelasan MAS Jemaah umrah terkandas di lapangan terbang Jeddah mahu penjelasan MAS](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723715159_jeddahkandasawani.jpg)
Jemaah umrah terkandas di lapangan terbang Jeddah mahu penjelasan MAS
Beberapa penumpang menunggu lebih 24 jam untuk mendapatkan penjelasan lanjut daripada pengurusan MAB namun terus hampa.
![Kerajaan Persekutuan, negeri perlu tingkat kepantasan beri kelulusan untuk tarik pelabur - PM Anwar Kerajaan Persekutuan, negeri perlu tingkat kepantasan beri kelulusan untuk tarik pelabur - PM Anwar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723712785_AnwarIbrahim.jpg)
Kerajaan Persekutuan, negeri perlu tingkat kepantasan beri kelulusan untuk tarik pelabur - PM Anwar
Kerajaan Persekutuan, negeri perlu meningkatkan kepantasan dalam memberi kelulusanbagi menjadikan Malaysia tumpuan pelabur.
![Pemandu maut lori terbalik, kesesakan 2 jam di Lebuhraya PLUS Ipoh-Kuala Kangsar Pemandu maut lori terbalik, kesesakan 2 jam di Lebuhraya PLUS Ipoh-Kuala Kangsar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/71723712690_kemalangantrelerP.jpg)
Pemandu maut lori terbalik, kesesakan 2 jam di Lebuhraya PLUS Ipoh-Kuala Kangsar
Seorang pemandu lori maut manakala kelindan cedera selepas kenderaan yang mereka naiki terbabas lalu terbalik di Kilometer 257 Lebuhraya PLUS arah utara, dekat sini, petang ini.
RADIO 360: Integrasi teknologi kumpul maklumat pendengar, data lebih komprehensif
RADIO 360 Malaysia merentasi 11 stesen radio Astro yang boleh diakses di aplikasi SYOK termasuk Era, Sinar, Gegar, Hitz, Mix, My dan Raaga.
![Tindakan Faisal Halim undang rasa sebak penyokong bola sepak Tindakan Faisal Halim undang rasa sebak penyokong bola sepak](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/71723706908_TBFaisalHalim.jpg)
Tindakan Faisal Halim undang rasa sebak penyokong bola sepak
Tindakan bintang Selangor FC, Faisal Halim yang bertemu pemain Sabah FC ketika perlawanan Liga Super minggu ke-9 mengundang rasa sebak.
![KPDN fokus pengantarabangsaan produk tempatan ke empat negara - Armizan KPDN fokus pengantarabangsaan produk tempatan ke empat negara - Armizan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61723712231_LotusKPDNKBBM.jpg)
KPDN fokus pengantarabangsaan produk tempatan ke empat negara - Armizan
KPDN menyasarkan penembusan produk buatan Malaysia di pasaran antarabangsa dengan kerjasama beberapa rangkaian pasar raya besar luar negara.
![Harga minyak mentah terus merosot Harga minyak mentah terus merosot](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2018-12/61545618217_OilRig.jpg)
Harga minyak mentah terus merosot
Indeks penanda aras minyak Brent jatuh 27 sen kepada AS$53.55 dolar, terendah sejak September 2017.