TOPIC: Business Continuity

Department-by-Department E-book

A good COVID-19 response plan does more than preserve access to financial services. It creates value by evaluating and modifying a financial institution’s business model to improve resilience and decrease risk—whether that means introducing new programs or adjusting controls.
This e-book shows FIs how to assess and manage the operational risks presented by coronavirus to build stronger institutions.
Learn more HERE

    Coronavirus response: follow along

    Don't forget that we have a topic tag for Coronavirus.  Follow it here to see how other FIs are responding to the crisis in a number of ways:

    Here's an interesting thread where FIs are talking about how they're changing their staffing to respond:

      BID Article: Leading During A Crisis

      Leading During A CrisisAs we work through continuity plans and manage the uncertainties that loom with COVID-19, leadership is key to ensure customers and employees that we are still there for them. We look at things to help keep everyone calm while reinforcing your commitment to them. READ ARTICLE

        Barclays' Outlook on Coronavirus Impact - Trade, Economy, Banking System Resilience, etc.

        Hi CBANC community! I wanted to share some market insight we received from our banking partner, Barclays. Just one opinion and obviously there's still a lot left to unfold but figured I'd share! Doc attached for download as well. 

        Brief summary of the Barclays coronavirus client call on Friday:

        • Significant reduction in global growth prospects for H1 expected, with impact greatest in particularly vulnerable regions (China, Japan, South Korea, Europe)
        • Most impacted parts of the economy include the travel sector, commodities (particularly oil) and SMEs
        • Ongoing uncertainty about outlook beyond H1, driven largely by uncertain public health forecast and effectiveness of virus containment and economic measures
        • Coordination of monetary and fiscal policy to respond to the crisis is not only encouraged, but also expected (i.e. “baked into” market expectations) – as a result, expect little impact when it does occur but significant adverse impact when it doesn’t (see market response to ECB not reducing rates last week)
        Banking system resilience
        • Banking system is more resilient to respond to a credit crunch due to reforms on bank capital and liquidity requirements put in place in response to the Global Financial Crisis
        • As a result, risk of systemic failure emanating from the financial system have reduced (but not disappeared)
        • Trading floors globally have not been stress tested to a scenario where everyone has to work from home to date; however, in Asia there have been contingency measures in place for the past 4-6 weeks requiring staff to work from multiple locations, with little to no impact on functioning of global capital markets 
        Capital markets
        • Turbulent forecast even prior to coronavirus, due to unstable US/China trade outlook and Brexit
        • In moments of market uncertainty, there is typically a shift towards “save haven” assets (e.g. USD, JPY, gold). However, what we have seen over the past 1-2 weeks is a flight to liquidity (even gold price declined) as institutional investors engage in broad liquidation of their positions in an attempt to manage risk
        • In FX markets:
          • Volatility is back both among G10 and especially emerging markets currencies
          • Emerging markets liquidity has deteriorated over the past 1-2 weeks, trades executed at wider spreads
          • G10 liquidity has been more stable with lower impact on spreads (impact particularly felt on forwards)
        • Last week capped the most turbulent stretch since 2008

        • Barclays do not currently see any extraordinary requests about additional working capital – utilisation levels in line with expectations
        • Feedback from corporate clients as follows: (i) lower stock and inventory levels, (ii) lower orders and production levels, (iii) cutbacks in production days, (iv) difficulty in finding additional suppliers to reduce their concentration risk
        • Sporadic but patchy reports that Chinese production is starting to come back to normal; however, these improvements likely to be offset by disturbances to both demand and supply in Western economies that are undergoing lockdowns
        • As this becomes a demand problem, quality of debtors becomes important – likely to result in working capital issues