Home Resources Library Strategy Impact of Covid-19 on the banking sector

Impact of Covid-19 on the banking sector

The crisis caused by COVID-19 is showing its first impacts on the banking sector. In report assesses the impact on the sector of seven factors and its trends: monetary policy, digitalization, regulation, economic growth, new entrants, competitive landscape and government support.

Category: Tags: ,


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.

Additional information





We use cookies to improve the user experience. Learn more

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.