Whilst the banking sector appears to have learned the lessons of the GFC, it is uncertain how long the crisis will continue to impact credit, put pressures on the capital of banks and how they will adjust allocations to existing loans. There is not a crisis on banks, at least not yet. Capital and liquidity have been shored up. Banks are stronger and able to withstand what they are experiencing – for now.
Governments have memory of the Asian Debt Crisis, GFC and have a reluctance to stretch budgets, dig too deep and face issues once the crisis is behind them. Many countries don’t have a safety net or central bank with levers to get on an even keel. It is uncertain if there will be a COVID second wave, and impact of livelihoods eliminated, and savings depleted.
What is happening is unprecedented. The jury is still out on how long this will continue and what the impact will be on businesses and the general man and women on the street. Governments, banks, financial institutions and corporates will need to dig deep. There needs to be a combined effort to save jobs and livelihoods.
Take a look at the webinar. Like and subscribe and tell us what you think in the comments.
With thanks to committee members Ben Arnott, Bree Miechel and Allard Nooy for planning this webinar for BritCham.
This article was contributed by the Financial & FinTech Committee, and Tim Rockell, Chair of the Energy & Utilities Committee.
BritCham’s Energy & Utilities Business Committee consists of members based in Singapore working across the region and dedicated to building out the region’s infrastructure. Our programme of activity in 2020 has a strong focus on climate change and decarbonisation in the run up to the COP26 conference to be held in the UK, postponed to 2021. The design, operations, and the financial, legal and technical expertise needed for the power, water and waste treatment buildout in the region are the cornerstone of the committee and forms the expertise that we showcase and connect to our members. For more information visit britcham.org.sg/committees/energy-and-utilities
55
EXPERT OPINION FROM OUR COMMITTEES