We focused on the main areas that will be covered in its assessment, namely financial institutions’ use of capital and liquidity buffers, the impact of pro-cyclicality on financial and prudential standards, and the functioning of operational resilience arrangements and crisis management frameworks under the strain of the pandemic.
It is evident that although low oil prices could boost consumption its impact on growth could be mixed, with oil exporting countries particularly negatively impacted by these developments in the form of deteriorating fiscal and external balances.