Caution still key for banks in Covid-19 aftermath

摘要

In reality - however enthusiastic some may be, and despite being able to offer important solutions - the banking industry is unlikely to transform from sinner into saviour. First of all, it would be unfair and undesirable to set unrealistic expectations on what banks can do to prop up the economy. In a crisis of this magnitude and nature, this is ultimately the job of governments. And there are other considerations. While emergency credit lines, the removal of stricter covenants and the offer of repayment 'holidays' do throw struggling businesses a lifeline, those loans will still need to be repaid. Whether companies can do so depends on the strength and speed of the economic recovery once the worst of the pandemic is over.