COVID-19: How Will European Banks Fare?
Author/Editor:
Shekhar Aiyar ; Mai Chi Dao ; Andreas A. Jobst ; Aiko Mineshima ; Srobona Mitra ; Mahmood Pradhan
Publication Date:
March 26, 2021
Electronic Access:
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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
This paper evaluates the impact of the crisis on European banks’ capital under a range of macroeconomic scenarios, using granular data on the size and riskiness of sectoral exposures. The analysis incorporates the important role of pandemic-related policy support, including not only regulatory relief for banks, but also policies to support businesses and households, which act to shield the financial sector from the real economic shock.
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