New York, January 24th 2013 - Recent financial market turmoil and subsequent sovereign crises across Europe took a heavy toll on many banks' credit profiles resulting in a substantial number of downgrades in 2012, but bank ratings are expected to be relatively stable during 2013, says Moody's Investors Service in its report, "Global Banking Outlook -- 2013."

"While there has been strengthening in many banks' financial performance, there are a number of interconnected themes with material implications for bank credit that we will closely follow in 2013," said Moody's Global Banking Managing Director Greg Bauer.

Moody's will monitor key themes in 2013 that include:

1. Continued weak global recovery and still-elevated sovereign risk for many European banking systems

2. Unprecedented low interest rates that dampen profitability and can encourage excessive risk-taking

3. Still-fragile investor confidence deriving from uncertainty over banks' risk profiles

4. Nascent regulatory reforms that impact risk-taking, capital, liquidity and the resolution of troubled banks

The report also provides regional overviews of the key issues facing banks operating in Europe, North America, Asia, Emerging Europe and Latin America.

Re-disseminated by The Asian Banker