Speech Klaas Knot - “COVID-19: how to contain the impact on the financial system”

Speech
Date 14 October 2020
Time 18:00 pm
Location Online
Speaker Klaas Knot

Although until now the banking sector has done relatively well, governor Knot cautioned that, as the COVID-19 crisis persists and the economic impact deepens, the banking sector is likely to feel the consequences of increasing business insolvencies in the near future. In the short term, he urged fiscal and monetary authorities, supervisors, and banks to “continue to do what they have done so far: provide the necessary stimulus, use buffers and provide credit, while keeping prudent levels of capital to be ready for future headwinds.” For the medium term, Knot stressed the importance of looking more closely at regulation of non-bank financial institutions.