Amid the pandemic, loan quality remained satisfactory as the banking system’s non-performing loan (NPL) ratio was at 2.5 percent as of end-June 2020. Given the inherent resilience and positive correlation of financial sector development with economic growth, how can banks help in economic recovery? As the surge of COVID-19 cases around the world continues, business activities have been disrupted.
The rules of the game are further evolving. This time around, there seems to be a crunch in global dollar liquidity as the US market has rapidly de-leveraged. And events are showing that the magnitude of financial risks that have crossed national borders has been beyond most market participants’ and regulators’ expectations.