Although it is increasing, the share of loans classified as NPLs that have benefited from moratoriums remains relatively low, while that of loans for which banks have recorded a significant increase in credit risk since origination (classified as ‘Stage 2’ according to international accounting standards) is diminishing.
Not too long ago, the saying was that when the United States sneezes, the world catches a cold. This is certainly still true, and the turbulence following the Federal Reserve’s announcement of tapering was a case in point. However, we have reached a point where the health of the world economy is not just determined by the state of the US economy.