Covid-19 will inflict its greatest harm on banks in 2021, according to a global industry survey by McKinsey.
The survey, which is based on conversations with hundreds of bank executives from around the world, sees loan losses spiking and the entire sector in developed markets sinking to a loss in 2021.
We still think that the peak is not there yet
Matthieu Lemerle, McKinsey
So far, many banks have taken a wait-and-see approach to provisioning, thanks to doubts about when government support measures will end, and what the impact will be when support finishes.
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