China's banks have the strongest credit profile among the emerging market BRICS nations (Brazil, Russia, India, China and South Africa), while Russia's banks - the weakest profile in the group, Moody's Investors Service said in a report.
According to Moody's, Russian banks have the lowest Adjusted BCA of ba3, due to their relative weakness in asset quality, liquidity and profitability.
By contrast, China's banks have the highest asset-weighted average Adjusted Baseline Credit Assessment (BCA) of baa2 mainly thanks to the dominance of large state-owned banks.
In the group, China's banks have the highest quality of assets. The aggregate ratio of non-performing loans to total loans at the nation's banks is 1.5%. By contrast, the ratio for Russian banks is 11.8%, the Star reported.
South African banks, together with Brazilian banks, are also the most profitable. In profitability, Indian banks are distinctively weaker than others.
