How bank regulators could mitigate coronavirus fallout
By Neil Haggerty
The market strain from the coronavirus outbreak has prompted some financial services observers to focus on which tools regulators and central banks could deploy if the system faced heightened risks. Unlike in the 2008-10 financial crisis, when a mortgage market crash nearly brought the industry to its knees, bank regulators are limited in their ability to respond to a nonfinancial event. …”They can’t manufacture vaccines, they cannot purchase copper to stabilize commodity supplies,” said Karen Petrou, managing partner at Federal Financial Analytics. “What they can, and I believe will do, is work with financial institutions and, where necessary, emphasize the need for operational resilience and give banks at least some comfort on forbearance.”
https://www.americanbanker.com/news/how-bank-regulators-could-mitigate-coronavirus-fallout
