How is Standard Chartered managing its credit loss reserves and what is the bank seeing in terms of economic recovery across Asian markets?

Standard Chartered has taken substantial precautionary credit loss reserves, including management overlays beyond what models suggest, due to pandemic uncertainties. While these reserves haven't fully materialized into actual losses, the bank maintains this cautious stance was appropriate. Early recovery indicators are positive across Asian markets, particularly in China, Hong Kong, and Singapore, where loan delinquencies that initially increased during the pandemic have declined. Other Asian countries with payment holidays are showing encouraging signs of customers becoming current on debt again. This positive trend supports the bank's plans to potentially resume distributions in early next year, subject to regulatory approval, as they remain well capitalized despite the uncertain environment.