Global loan losses seen at $2.1 T by End of 2021

Standard & Poor’s (S&P Global) is expecting banks around the world to see loan losses of $1.3 trillion in 2020 and a total of $2.1 trillion until the end of 2021, Reuters reported.

More than half of the loan losses will be in the Asia Pacific region, however, North America and Western Europe will see the largest increase compared with the levels of 2019.

The world’s top 200 rated banks account for around 66% of the global bank lending and S&P expects loan losses to absorb around 75% of their earnings.