Indian banks to post a larger Increase in Margins in FY23

Current Context: As per Credit rating agency Moody's Investors Service banks in India, Saudi Arabia, and South Africa would post larger increases in margins in FY23.

• The rating agency has also said a more rapid acceleration of inflation would necessitate higher loan-loss provisions.
• The main reason behind the rising inflation rates is supply constraints, increases in the prices of commodities, and currency pressures.
• As the inflation increases, the Banks' credit costs also increase which leads to increases in credit costs in seven of the 10 systems.
• The rating agency's focus is on banks in the ten G-20 emerging markets: Argentina, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, and Turkey.
• Among the ten G-20 emerging markets, Turkey has been facing the steepest inflation, which hit 73% in May 2022, followed by 61% for Argentina.

Question:

Q.1 As per Moody’s Investors report which of the following country faces the steepest inflation?
a. Argentina
b. Turkey
c. India
d. Saudi Arabia