The fallout from the coronavirus pandemic is likely to expose funding and liquidity weaknesses at banks in the Middle East, Turkey, and Africa (MenaT), said S&P Global Ratings in a new report.

"Now that market sentiment has reversed and risk aversion is back, some banking systems in the region are in for a bumpy ride," said Global Ratings credit analyst Stephanie Mery, commenting on the report titled "COVID-19 Exposes Funding And Liquidity Gaps At Banks In The Middle East, Turkey, and Africa".

"We see Turkey as being the most exposed. We also expect that sovereigns will absorb part of the hit to banks. However, this will indirectly find its way to some banks because of their large exposures to sovereigns in some countries," Mery added. – TradeArabia News Service