Unfortunately, as always, the devil is in the details. The difficult question is how should a regulator use “market-based” or “performance-based” measures in determining which, if any, supervisory sanctions or limits to place on a bank. FDICIA’s approach was straightforward.
On the other hand, the impact of COVID-19 remains significant, particularly in face-to-face services such as dining-out, travel, and entertainment.2 For example, a consumption indicator based on credit card transaction data indicates that services consumption, compared with goods consumption, not only registered a sharp decline for the April-May period but also has seen a marked delay in a subsequent pick-up.