Description
Key points:
- A swift and coordinated response from monetary, fiscal and regulatory authorities has been key to address the consequences of the COVID-19 crisis. These measures (heterogeneous by countries) have supported credit growth and have mitigated the initial negative impact.
- Early effects on the banking sector are mainly a decline in profitability, cost control, without signs of asset quality deterioration yet and sound capital and liquidity levels.
- Four key features are identified for post COVID-19 winners in the banking industry: a) embrace digitalization; b) adapt to clients’ needs; c) increase efficiency; d) revenue diversification.
