Banks demand capital support as credit risks surge

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By Tyler Davies
19 Mar 2020

International banks are at risk of depleting their capital reserves as they try to keep credit flowing to companies through the coronavirus crisis. Governments and regulators have already responded, but the sector is screaming out for more work to be done to ease the burden of complying with stringent accounting and supervisory rules, reports Tyler Davies.

Bank balance sheets are deteriorating as the fallout from Covid-19 leads to a sharp downturn in economic conditions.

Institutions are having to ramp up loan loss provisions, at a time when their risk-weighted asset (RWA) volumes are expected to surge on the back of a sudden ...

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