Supply-chain bottlenecks have become one of the defining features of the Covid era. This is a problem for both the global economy and the global financial sector. And with new strains of the coronavirus continually emerging, it could get worse.
The impact is felt throughout the banking system, firstly by pulling down what might otherwise have been a relatively vigorous appetite for new loans among business clients. Thanks to loan moratoriums and other government support, banks have got through the last two years relatively unscathed.
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