Bank Governance Leadership Network, April 2020
On March 30 and March 31, Bank Governance Leadership Network (BGLN) participants joined two conference calls to discuss the global response to the COVID-19 pandemic and implications for large banks. The key themes that emerged are:
Operational resilience and business continuity planning
As large parts of economies globally are “frozen” and employees work remotely to stem the spread of COVID-19, banks have successfully implemented business continuity plans, but are also running into operational challenges.
Policy makers and regulators around the world have taken a variety of steps to provide economic relief to individuals, SMEs, and large corporations to ease the financial impact of the crisis. Regulators are also providing relief regarding some post-crisis regulatory requirements to enable banks to provide financing and ease the burden of implementing new requirements. The situation has placed banks in the center of the economic response, creating new challenges and opportunities.
Planning for an uncertain future
Participants anticipate that the unprecedented levels of uncertainty – regarding government policies and the ultimate economic impact - will persist for some time, posing challenges for balance sheets and scenario planning. The “new normal” could also raise longer term strategic and operating questions.