CEO of major Asian bank says ‘a big, big challenge’ is looming for the global economy
The economic aftermath of the coronavirus pandemic is likely to worsen when authorities start rolling back relief measures — and banks could experience “far more damage” to their balance sheets, said Piyush Gupta, group chief executive of Singaporean bank DBS.
Speaking to CNBC’s “Managing Asia” anchor Christine Tan, Gupta said government stimulus in many countries is helping businesses tide through the current difficult period. But when those measures come to an end, many companies may not survive, he explained.
“If a lot of companies are not able to survive ... you’ll have this million-dollar question of how do you deal with these ‘zombie companies,’” said the CEO.