Financial resilience in banking: a balancing act

Financial resilience in banking: a balancing act

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The banking sector will be expected to continue to support the recovery once the most acute phase is over, but it faces substantial challenges of its own. Reducing risk in one area could cause it to move to or increase in another area and some support measures may have unintended  consequences. Banks have done much to rehabilitate their reputations since the 2008 financial crisis and will be reluctant to be seen to do anything to undermine recovery this time around. Continuing pressure and expectations from governments and regulators may require then to take actions that are not in the best interests of their own longer-term survival.

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