Answer to Question #266145 in Finance for Paige Connor

Question

You have been hired as the Chief Strategist and Policy Analyst for a commercial bank in your jurisdiction. You are to assess the impact the global financial crisis of 2007/2009 had on the pace of the Basel 2/3 reform agenda in your jurisdiction. What are the implications of the current covid 19 on this agenda and what are five immediate steps that you will take to position your institution as a resilient bank for the future

Answer 1

As cases of COVID19 multiply, a number of actions are emerging among banks to protect and communicate with customers. Banks have already taken a number of measures in response to the spread of COVID19. As the chief strategist and policy analyst for a commercial bank, the following steps must be taken for the bank's effective future.

• Standardize workforce metrics for multi-month durability.
• Provide essential banking services to retail consumers.
• Fulfill the social mission of supporting families and businesses through credit.
• Managing viable adaptable work arrangements through productive telecommuting.
• Plan for geological division of capacities and exercises.

Standardize workforce metrics for multi-month durability:

As a priority, commercial banks must take proactive measures to secure their staff and contain the spread of COVID19. These incorporate restricting travel and embracing other prevention-oriented approaches, emphasizing occupational cleanliness, advertising elective ways of working, and starting proactive communication.

Provide essential banking services to retail consumers:

People will continue to need essential banking services during these difficult times. Banks should continue to operate branches and ATMs with adequate guarantees while encouraging the widespread use of remote services. This approach will take into consideration the needs and preferences of all consumer segments, counting the older portion of the population who are most defenseless to COVID 19 and less inclined to adopt digital chanels.

Fulfill the social mission of supporting families and businesses through credit:

Most households and businesses will be unfavorably affected by the phenomenal nature and scale of current health and security measures. They will likely require extra support from banks to meet day-to-day liquidity needs through credit. From a credit point of view, banks got to rapidly recognize most of the affected divisions and clients to get it how they can be stronger for their clients and the community.

Managing viable adaptable work arrangements through productive telecommuting:

The COVID19 pandemic has put flexible working methods, in particular remote working, in the spotlight. Job flexibility refers to arrangements that allow employees to work remotely from their primary workplace. Telecommuting / remote working is the most common type of job flexibility.

Plan for geological division of capacities and exercises:

From a pandemic planning point of view, banks should pay closer consideration to the geographical concentration of these basic activities and capacities, and how to segment them for work exchange to substitute areas and destinations. As prudent risk administration and to the extent possible, banks should look to expand the method of work accordingly and successfully.