In this article we will dive into how banks are responding to the coronavirus
In this uncertain time everyone is banding together to make the struggle that little bit easier for one another, one of the industries at the forefront of this is the banking industry. In this article, we are going to be taking a look at what measures different banking brands have chosen to take during this pandemic.
Banks have all approached the pandemic in different ways. Each articulating what they are willing to do to help their personal banking and corporate banking clients.
Some are offering mortgage relief payments to all customers for a three month period, others are waiving interest for three months. In other instances, some banks are opting to treat every client on an individual basis to assess what assistance they would require.
Most banks have opted to increase credit cards limits and cash withdrawal amounts as well as dropping missed payment fees. These are all elements that will help the individual dramatically in a time where job security is a rising concern.
These institutions are not just helping the personal individuals, they have also introduced funds for small businesses to help them stay afloat with some banks offering a huge £5 billion to help.
Within the UK, industry banks have been warned against profiteering from the coronavirus crisis, when it was observed that some banks were taking advantage of the surge for emergency loans. To highlight the extremity of bad practice, it was found that some banks were still charging interest rates between 7% and 12 % despite The Bank of England lowering the base interest rate to 0.1%.
Across Europe banks are starting to feel the strain this virus is causing, with a large amount of countries within Europe on a lockdown, business is clearly on the decline. With no travel and no tourism, the Euro is not as in as high a demand. Due to this, the Central bank is purchasing public and private bonds up to the value of 750 billion Euros to help reduce the economic impact this situation has caused.
In the interim period, the support provided looks promising and sufficient measures seem to be in place to help people and businesses through this difficult time without a huge strain on their wallets. However, with no clear end in sight, it is hard to evaluate the impact this will take on global economies and how long banks will be able to continue their support without having to call on central banks and the ECB as a means of last resort.