Departmental Papers

1 total work

COVID-19: How Will European Banks Fare?

by Shekhar Aiyar, Mai Chi Dao, Andreas A Jobst, Aiko Mineshima, Srobona Mitra, and Mahmood Pradhan

Published 30 May 2022

This paper evaluates the impact of the crisis on European banks' capital under a range of macroeconomic scenarios, using granular data on the size and riskiness of sectoral exposures. The analysis incorporates the important role of pandemic-related policy support, including not only regulatory relief for banks, but also policies to support businesses and households, which act to shield the financial sector from the real economic shock.