3 minute read 15 May 2020
Exterior view of man standing at window of modern building at night

How COVID-19 is helping banks build operational resilience

By

Jan Bellens

EY Global Banking & Capital Markets Sector Leader

Passionate leader on innovation in financial services, especially in emerging markets. Global citizen. Keen traveler.

3 minute read 15 May 2020

In an episode of the Global Regulatory Update podcast series, we explore whether operational resiliency plans are up to par for a crisis of this scale.

While the 2008 financial crisis has prepared banks for large-scale disruptions, the pandemic is challenging banks’ operational resilience and business-continuity plans in unprecedented ways. They are responding to immediate challenges while also urgently reviewing plans to address gaps and reassess approaches to their operating models to ensure they are fit for the future of banking. There is trust that a well-capitalized and well-regulated banking system will play its role in restoring the real economy. 

During a recent podcast with the Institute of International Finance, Martin Boer, Director of Regulatory Affairs, interviewed EY Global Banking & Capital Markets Sector Leader, Jan Bellens, on how firms’ operational resilience plans are holding up in a crisis of this scale, how regulators are responding to safeguard the industry, and the challenges and opportunities to expect as both firms and regulators plan for a post-crisis future. 

Here are some key takeaways from the discussion:

  • Why COVID-19 is different from previous crises and how it is testing banks’ operational resilience
  • How banks are proving their resilience in this pandemic
  • What banks and regulators are learning from COVID-19 and how future approaches will need to adapt
  • How banks are responding to evolving regulatory and supervisory requirements for operational resilience
  • What steps smaller firms can take to support resilience

Listen to the complete podcast.

For your convenience, a full text transcript of this podcast is also available. Read the transcript.

Summary

The COVID-19 global pandemic will renew focus on operational resilience. While there is no crystal ball, this will be a great learning exercise for both the public and private sectors. Banks will need to adapt their approaches to changes in their operating model and ecosystem, which will require flexibility, ongoing communication and global regulatory coordination.

About this article

By

Jan Bellens

EY Global Banking & Capital Markets Sector Leader

Passionate leader on innovation in financial services, especially in emerging markets. Global citizen. Keen traveler.