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Finance

Banks in Asia face multibillion-dollar revenue hit from coronavirus

Steps to clean up China's bad debts could slow as Beijing tries to boost economy

The People's Bank of China in Beijing. Authorities in the country are taking measures to address uncertainty caused by the coronavirus. Loan defaults arising from the virus will not be included in nonperforming loans for a "grace" period.   © Reuters

HONG KONG -- HSBC Holdings and its regional Asian rivals are staring at a hit of more than $2 billion in lost revenue and an even bigger bill in provisions for soured loans due to the coronavirus outbreak, with the impact set to double if the epidemic is not contained by March.

U.K.-based HSBC, which is planning to redeploy capital to Asia, sees $600 million in additional loan losses as clients are forced to shut operations and demand for business from their consumers dries up.

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