The pandemic of 2020 has a long-lasting impact on businesses worldwide. The repercussions are not yet fully appreciated but the immediate impact is falling revenue and shrinking cash flow for many corporations and their business activities. This raises the credit risk and threatening banks with significant corporate loan losses. Many of corporate borrowers will be seeking the banks’ indulgence for an opportunity to rehabilitate and recover, but many will probably not survive with so much uncertainties.
The banks will have to make some tough decisions, but not without careful understanding of the prospects of immediate loan losses against the risk of granting more time and support in the face of uncertainty. This programme provides a framework for bank managers to make those tough decisions.