Question

What is the likely impact of the COVID 19 pandemic on financial markets and institutions globally? What are future prospects of these institutions in terms of relevancy and efficiency in the new normal? Also provide some recommendations.

Answer 1

The most likely impact of COVID 19 in the near term for financial companies are not to be very much favorable because most economies are following systematic lockdown to contain the number of people who are affected with this but due this most economies are going to shrink in their productivity and this will affect their earning potential and then further that will negatively affect the stock price, that is why we are seeing the fall in the market indices of many countries. The financial markets have been worse affected by this pandemic. The future prospect of this pandemic has been so far that most companies are adopting policies of flexible working environment where people can work from anywhere, they want and not restricted to one physical place. This can actually help the companies in reducing the cost in many ways but many industries where manual labor is employed are still struggling to cope with this. Until there is a vaccine, which is still in the development process the companies will have to find way through which they can continue their business activities. The major recommendation for companies would be to adopt a flexible or remote work environment policies where people can work from anywhere but with this companies will also have to build an effective system where the data privacy and the intellectual properties of the companies are being protected.