Question

the risks being posed to the banking sector because of the Covid 19
1000 words.
Give the main points. Write as much as you can

Answer 1

Well, The whole world is facing a financial crisis due to this pandemic. Every business got stuck with less orders thereby less cash flow.

Problems faced by banking sector during this pandemic are:

1. Cross checking of concerned regulatory authority, which means banks have to maintain a particular amount of liquid funds as per the federal reserve and checking the management activity whather they are  activily engaged in banking problems and taking necesssary action aganist the risk, so because of that federal reserve will cross checks the balances of liquid cash of banks during small interval gaps. In this situvation it is very much difficult for a financial institution to maintain the minimum liquid funds.

2. Customers: Since this is banking industry, most of money transaction happens here, wheather it is savings account or business account. So banks have deal with lots of customers. Because of the pandemic , providing quality services to customers is not possible.

3. Fear of losing money: Small savings of average people are collectively deposited in banks, Due to covid 19, most of the people fear about losing money. So banks have to take utmost care to reduce the panic situvation and make their customer believe that all money are safe and banks are stable. This is a challenging task for the banks.

4. Job security: Another most important problems banks are facing is the security of jobs of its employees. If any type of financial crisis occur then it will directly affect the employee safety and security.

5. Delay in Loan repayment: Due to the crisis customer will go cashless therefore they may not be possible to repay their credit card bills , This will ultimately affect the Cash flow of banks.