The ﬁnancial system has proven to be robust: Thanks to the G20 regulatory reforms following the global ﬁnancial crisis, the banking system is better capitalized, and there is greater regulatory ﬂexibility to reduce pro-cyclicality. Policy responses have been coordinated internationally. However, key challenges for debt sustainability and ﬁnancial stability may still lie ahead.
Dealing with increasing insolvencies, maintaining crisis-related policy support only as long as necessary, and ensuring ﬁnancial sector resilience will be among the policy priorities going forward. There is still a high degree of uncertainty concerning the future evolution of the pandemic and the damage that has been done to the real economy.