Increased remittances are credit positive for Pakistani banks: Moody's
Last updated on: 22 February,2021 05:12 pm
The agency said, 24.1 percent to $16.5 billion increase in workers’ remittances for 7MFY21
ISLAMABAD (Dunya News) – An increase in remittances are credit positive for Pakistani banks, Moody’s, a credit rating agency said in its latest report released on Monday.
Higher household incomes because of remittances also create new lending opportunities for banks and support households’ debt repayment capabilities.
Moody’s in its latest report on Pakistan has stated increased remittances are credit positive for Pakistani banks, particularly United Bank Ltd which had a leading market share of around 24 percent of remittances as of 30 September 2020.
The agency also said, 24.1 percent to $16.5 billion increase in workers’ remittances for 7MFY21 is contrary to their expectation that the pandemic would keep remittances flat and the World Bank s forecast of a sharp decline in global remittances.