Banking Sector Regulatory and Supervisory Response to Deal with the Impact of Coronavirus
Monday, May 18
Mr. Rachid Awad, Mr. Caio Ferreira, and Mr. Luc Riedweg, all IMF, Monetary and Capital Markets Departments
On May 18, 2020, the JVI kicked off a new webinar series to share useful information and discuss issues critical for policymakers in the turbulent pandemic environment. In the inaugural webinar, Messrs. Rachid Awad, Luc Riedweg, and Caio Ferreira from the IMF Monetary and Capital Markets Department explained current IMF thinking about the “Banking Sector Regulatory and Supervisory Response to Deal with the Impact of Coronavirus.”
With face-to-face training in Vienna impossible since early March, the JVI has been working on new ways to stay usefully connected with its constituents. In May it launched a new webinar series to analyze the latest developments and discuss optimal pandemic-responsive policies to promote financial stability, fiscal policy, and effective macroeconomics. It opened the series with a webinar on “Banking Sector Regulatory and Supervisory Response to Deal with the Impact of Coronavirus” that featured Rachid Awad, Luc Riedweg, and Caio Ferreira of the IMF Monetary and Capital Markets Department expanding on the most recent IMF policy guidance note.
JVI Director Thomas Richardson opened the event by highlighting the importance of the webinar series as a forum for discussing issues critical to policymakers responding to the current economic shock. JVI Lead Economist Reiner Martin and Economist Maria Arakelyan acted as moderators. In introducing the presenters, Mr. Martin noted that the large number of registrations demonstrated the relevance of the topic.
The presenters shared their views on appropriate regulatory and supervisory responses to balance preserving financial stability, ensuring that the banking system is sound, and sustaining economic activity throughout the pandemic. They also warned, however, that there are gray zones where situations should be handled case-by-case. Mr. Ferreira opened the presentation with a broad overview of representative policy recommendations for supervisory authorities, and Mr. Awad and Mr. Riedweg expanded with details on specific issues. Their main recommendations were these:
A lively Q&A session followed the presentation, with the speakers providing more details on specific questions. They again emphasized the importance of having a flexible, dynamic view of the issues and close supervisory monitoring of the situation.
Reiner Martin, Lead Economist, JVI
Maria Arakelyan, Economist, JVI