This paper outlines the findings of a simulation analysis that assesses the extent of the potential rise in bank NPLs, taking into consideration assumptions under extensive monetary and fiscal support versus a scenario without continued support measures in keeping with conditions that prevailed in the 2008-2009 Global Financial Crisis. The paper also investigates the subsequent implications for bank capital and discusses whether policy responses may be needed to clean balance sheets.
The COVID‑19 crisis and banking system resilience
Simulation of losses on non-performing loans and policy implications
