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COVID-19: Impact on the banking sector” COVID-19 has generated significant instability and high volatility in global capital markets

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COVID-19: Impact on the banking sector” COVID-19 has generated significant instability and high volatility in global capital markets. While the full impact is yet to be determined, it’s expected that the adverse impacts are likely to continue from the virus’ knock-on effects… Among others, this KPMG report identifies Profitability and credit management/cost of risk as one of the areas that is likely to be most impacted by COVID-19.

Required:

Critically analyse why Profitability and credit management/cost of risk, i.e. credit risk are main concerns for banks given the COVID-19 environment, as such would have a severe impact on the banking sector globally.