the banking industry continues to fill an enormous credit gap,offering forbearance and giving customers

greater access to loan facilities. The banking sector has also played a crucial role in distributing various
governments fiscal packages.

COVID-19 pandemic crisis will also be a test to banks running digital transformation programmes as
digital interactions become the primary option for client The high demand of digital assets will be a
challenge for banks . Banks must keep offering services and products to stay alive , without branches this
will be a big challenge

Fraudsters are becoming more sophisticated and are taking advantage of this situation (Cyber and AML
are a realthreat.

Impact of Covid-19 on Banking Sector

The COVID-19 pandemic has had a massive impact on the global economy. The impact COVID-19 has
had on the banking sector consists of three aspects:

 short-term

 long-term

 systemic risks

Support for differentiated financial services for pandemic prevention and control is needed,
with increased credit support. Medium-to-small enterprises need to be supported through
special credit lines, reduced interest rates on loans, deferred repayments, and establishment of
long-term credit systems. Digital transformation needs to take place at a faster rate to improve
intelligent risk control systems.

Banks sit at the heart of the economy and provide funding to corporates and individuals. Their
stability is crucial to keep the system up and running.

Tens of thousands of consumers are now being placed under quarantine or lockdown. As a
result, they might lose their ability to pay for credit, particularly mortgages.

The banking sector should remain resilient to the COVID-19 shock under most reasonable shock
scenarios, reflecting the strong capital and liquidity positions of the majority of banks,” the SBP
said in the financial stability review 2019 report. The SBP said financial sector stability started to
improve towards the end of last year after some strains due to sluggish growth during the early
part of the year.

Steps to be taken in this Pandamic for Banking.

Credit Management

Prepare for losses

Extend credit

Digitize to manage the demand for refinancing

Revenue Compression

Lower net interest margins

A drop in payments revenue

A decline in trade finance and cross-border payments

Customer Service and Advice Provision

Educate and train customers

Minimize physical infection risks

Personalize advice to consumers

Operating Model Adjustments, Cost Control and Innovation

Carefully consider the tasks of the ‘war room’

Review project expenditures

Be flexible with vendors and suppliers