This short paper provides a visual summary and numerical stock-take of the banking sector prudential regulatory measures taken across the world in response to the COVID-19 pandemic. As follow-up to an IIF article published in the early part of the COVID-19 crisis, this paper extends that earlier analysis to explore trends through to the end of 2020.
During 2020, the IIF recorded over 500 measures that were announced as part of the response to the COVID-19 crisis by the global standard setting bodies, G20 members and other leading financial jurisdictions. A variety of measures have been used, but the largest proportion are capital measures. The bulk of the measures were announced in March and April. However, there were noticeable increases in the number of announcements in September and December, including extending earlier short-dated measures.
The prudential regulatory response has so far have been swift and substantial to enable the financial sector to contribute to supporting households, businesses and markets. The duration of this health and economic crisis remains uncertain. Amid ongoing exceptional uncertainty, it remains valuable for regulators to provide the maximum transparency and necessary flexibility for banks to effectively support their clients and the economy.