COVID-19 : The Regulatory and Supervisory Implications for the Banking Sector
This note provides a set of high-level recommendations that can guide national regulatory and supervisory responses to the COVID-19 (coronavirus) pandemic and offers an overview of measures taken across jurisdictions to date. The banking sector pla...
| Main Authors: | , |
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| Format: | Policy Note |
| Language: | English |
| Published: |
International Monetary Fund and the World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/446571590080100775/COVID-19-The-Regulatory-and-Supervisory-Implications-for-the-Banking-Sector http://hdl.handle.net/10986/33793 |
| Summary: | This note provides a set of high-level
recommendations that can guide national regulatory and
supervisory responses to the COVID-19 (coronavirus) pandemic
and offers an overview of measures taken across
jurisdictions to date. The banking sector plays a critical
role in mitigating the unprecedented macroeconomic and
financial shock caused by the pandemic. Timely, targeted and
well-designed regulatory and supervisory actions are
essential to maintain the provision of critical financial
services, particularly to households and firms that are
affected most, while mitigating financial risks, maintaining
balance sheet transparency, and preserving longer-term
financial policy credibility. In this context, authorities
should employ the embedded flexibility of regulatory,
supervisory, and accounting frameworks, and encourage
judicious loan restructuring while continuing to uphold
minimum prudential standards. Standard-setting bodies have
issued guidance to support national authorities in their
efforts to provide effective, sound, and well-coordinated
policy measures. |
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