Managing Financial Sector Risks from the COVID-19 Crisis in the Caucasus and Central Asia

Download or read book Managing Financial Sector Risks from the COVID-19 Crisis in the Caucasus and Central Asia written by Iulia Ruxandra Teodoru and published by INTERNATIONAL MONETARY FUND. This book was released on 2022-03-10 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: The COVID-19 crisis raises the risk of renewed financial sector pressures in the Caucasus and Central Asia (CCA) region in the period ahead. Bank distress and its economic and fiscal fallout have been recurring features of many CCA countries, as seen after the global financial crisis and the 2014–15 oil price shock. Strong policy responses have delayed the full impact of the COVID crisis so far, but financial sector risks will increase once public support is phased out. If these risks are not preemptively addressed, banks’ ability to lend during the recovery phase could be impaired and there may be a need for costly public interventions, as in the past.