Banks to face next test once support wanes: Global Banks 2021 Outlook

According to analysts of S&P Global Ratings, a sharp rebound in global growth expected in 2021, together with strong bank balance sheets, support from authorities to retail and corporate markets, and regulators' flexibility, should limit bank downgrades in 2021. Deviation from the base case, if the economic rebound is weaker or delayed, could result in more negative rating actions, particularly in regions with a second wave of infections and the reimposition of restrictions.