Newsletter on Covid-19 related credit risk issues

The Committee issues this newsletter to provide greater detail on its internal discussions regarding Covid-19 related credit risk issues. The Committee believes the information provided may be useful for both supervisors and banks in their day-to-day activities. It mainly deals with the increased challenges banks face when assessing the credit quality of borrowers due to the Covid-19 pandemic. Supervisors have observed a range of policies and practices across banks' credit risk governance and credit risk models. In addition, the Committee intends to continue monitoring bank practices in assessing credit risk and asset quality, and setting provisions, especially as the effects of support measures continue to evolve.

Please find the Newsletter here.