The rapid growth of consumer loans across the Commonwealth of Independent States (CIS) has increased the risks of deteriorating asset quality, especially as economies weaken because of the coronavirus outbreak and falling oil prices, Moody’s Investors Service said in a report published on Tuesday.

“The latest oil price shock and the adverse impact from the coronavirus will accelerate the consequences of rapid credit growth,” said Svetlana Pavlova, an analyst at Moody’s, Report informs.

“Consumers’ debt-servicing capacity will be negatively affected as the spread of coronavirus causes a downturn in several sectors. Furthermore, a prolonged oil price weakness would cause economic slowdowns and trigger a faster deterioration in asset quality in Russia, Kazakhstan, and Azerbaijan.

Even so, regulatory measures may help to prevent an asset quality crisis. Most CIS regulators have either implemented such measures or are drafting them,” says the report.