At the same time, they should not underestimate the fact that these challenges might indeed put the species “bank” onto the endangered list. Today, therefore, at the request of the Bavarian Centre of Finance, I will talk about the business 1/6  BIS central bankers' speeches  models of banks in a changing environment. Business models are, as it were, survival strategies.
But we do recognize that with the unprecedented health crisis, NPLs could build up 1/5  BIS central bankers' speeches  over time. And this is why the BSP is closely monitoring the exposures of banks. The current strength of the banking system is likewise anchored on the presence of sufficient buffers to meet liquidity and capital requirements.