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COVID-19’s impact on banking & capital market institutions

Guidance for banking and capital market executives

Banks and capital markets institutions have no choice but to remain hypervigilant and rewrite the pandemic playbook as circumstances with COVID-19 evolve. While it is reassuring to see some aggressive fiscal and monetary policy responses around the world already, clarity on how these actions will stabilize markets and accelerate the path to normalcy is yet to emerge.

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The uncertainty from COVID-19 will remain for the foreseeable future. Banks and capital markets institutions have no choice but to remain hyper vigilant and rewrite their business continuity playbooks as circumstances change. While it is reassuring to see some aggressive fiscal and monetary policy responses around the world already, clarity on how these actions will stabilize markets and accelerate the path to normalcy is slowly emerging, and in some cases yet to emerge. However, banks and their customers can take some comfort that capital ratios were the strongest going into this crisis than at any time in the last decade.

Banks need to actively consider the immediate needs of their people and simultaneously the multiple near-, short-, and medium-term operational, financial, risk, and regulatory compliance implications. They have an opportunity to support market and economic activity and to facilitate a quick return to stability. If banks and capital markets firms respond well to these unprecedented challenges, they will not only help society, but also increase trust and the reputation of the banking industry in the long run.

This article looks at:

  • Potential long-term impact on banks and capital markets 
  • Key questions executives and boards should be asking 
  • Practical next steps
Understanding COVID-19's impact on banking & capital market institutions

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