While banks have not
caused this crisis, they will be critically important for economies’
performance during and after the Covid-19 crisis. Over the past few months, monetary and
prudential authorities across the globe have therefore reacted swiftly to the
unfolding crisis, easing monetary policies and easing requirements on banks to
encourage them to keep on lending and supporting the real economy.
In this
video, Professor Beck focuses on measures taken by prudential authorities; he
discusses the economics behind these measures and provides details on some of
these measures, including capital relief and pay-out restrictions. He also
assesses cross-border aspects of the measures and notes the importance of
preparing for the aftermath of the crisis when bank losses will require further
regulatory actions.
