So far, the increase in credit costs does not seem to be as serious as that observed after the GFC; however, as COVID-19 may have a protracted impact on corporate sales and profits, attention should continue to be paid to future developments.
Retail Test—Metrics for Retail Lending The core of the retail lending test would be to use widely available data to assess two clear objectives: how well a bank is serving LMI borrowers, small businesses, and small farms in its assessment area, and how well a bank is serving LMI neighborhoods in its assessment area.