The Finance World With and After COVID-19

The financial sector is challenged by massive uncertainty brought on by the pandemic, but also faces material opportunities for beneficial change. Policy makers and governments have the chance to help (re-)build key parts of the economy and financial systems to make them fit-for-purpose in a new normal. Green finance and sustainability will become key pillars of the post-pandemic world. And a new age of increased digitization and the responsible use of data has the potential to reshape the mandate of central banks and supervisors. Doing this effectively means investing in revival, not just survival.  

During this virtual event, jointly organized by the Centre of International Governance Innovation (CIGI) and the Oliver Wyman Forum, we discussed how policy makers and financial services leaders can help the industry navigate the risks it faces during and after the pandemic and, as a result, build more resilient economies for the future.

You can read more about previous editions of the conference here: 2019 conference, 2018 conference, 2017 conference. 

15:00 – 15:10 CET           Welcome: Oliver Wyman and CIGI

15:10 – 16:10 CET           Panel discussion followed by Q&A:

Elizabeth McCaul, Member of the Supervisory Board, European Central Bank            

Raghuram Rajan, Former Governor of the Reserve Bank of India, University of
Chicago             

Lorenzo Bini Smaghi, Chairman, Société Générale

Ted Moynihan, Global Head of Financial
Services, Oliver Wyman (moderator)

16:10 – 16:30 CET           Keynote address followed by Q&A

Giovanni Tria, Former Italian Minister for
Economy & Finance and Distinguished Fellow, CIGI

16:30 – 16:40 CET          Closing remarks

16:45 CET                        Close

European banks face a tough challenge after a second wave of the coronavirus blunted the euro area’s recovery in the autumn. The European Central Bank believes nonperforming loans (NPLs) could exceed the peak hit during the 2008-2009 financial crisis. Banks need to identify and provision for NPLs, and differentiate viable from weak credits before debt payment moratoria expire.

Banks need to bolster their competitiveness and profitability in order to finance economic recovery. Digitizing operations, a trend the crisis has  purred, can help. Completing the EU banking
and capital markets union would bolster banks by fostering cross-border activity and securitization. And consolidation can strengthen banks and attract more investment to the sector.

The public and private sectors have key roles to play in helping the corporate sector rebuild. Asset
management companies could step in and buy debt of ailing but viable companies while governments should consider extending targeted subsidies and encouraging market-based debt restructuring. The key is to prevent today’s economic crisis from spilling over into a banking and financial crisis.