COVID-19 AND THE BANKING INDUSTRY- RISKS AND POLICY RESPONSES
This course examines how the economic ramifications of the coronavirus pandemic could affect banks and the banking industry.
The course begins by describing how unexpected missed loan payments affect banks’ conditions and how missed payments, when they occur in sufficiently large amounts, can lead to bank failures.
It then looks at bank balance-sheet data as of December 31, 2019, to assess the exposure of banks to losses from missed payments on different types of loans before the onset of the pandemic.
The course also examines how the responses of the federal bank regulators (the Federal Reserve, or Fed for short, the Office of the Comptroller of the Currency, or OCC, and the Federal Deposit Insurance Corporation, or FDIC, and legislation passed by Congress could help mitigate the pandemic’s impact on banks.
The course concludes with a brief outlook for the banking industry.