Covid-19: Banks to face risks, other challenges – Experts

Financial experts have said that coronavirus outbreak in the country will bring risks and challanges for the nation’s banking sector.

They explained that with the economic slowdown, there is a heightened risk of economic contractions and breaches of cyber security.

They explained that the current situation will lead to higher creadit losess and its attendant impact on overall assets quality, capital and liquidity.

According to PricewaterhouseCooper (PwC) the covid-19 impact would reduces fee and trading income as well as mount pressure on net interest income.

PWC said that apart from detonation of information Technology and other support services because of internal challenges or vendor problems, there would be risk of operational constraints of keeping employee safe and meeting customers expectations.

It however, said that the Covid19 pandemic has given rise to unprecedented challenges that have affected virtually every expect morden life.

The PwC recent report said the economic implications of coronavirus will have a consequent impact on many aspects of accounting and financial reporting, adding that the nation’s banks face some of the biggest accounting challanges.

Stating the pandamic risks and its impact on the global economy, the accounting group said the entire globe would experience recession and financial crisis and there would be decline in sales, leading to cash flow and covenant issues.

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