Delinquency rates have been low during the pandemic. However, forbearance, social policies, and fiscal relief are phasing out. Institutions must be prepared for an oncoming bubble of non-performing loans (NPLs). As EY stated in a recent blog post, “With large swathes of retail customers and small-to-medium-sized enterprises (SMEs) expecting to need financial assistance to avoid collections, banks must act now to devise a set of unique debt treatment strategies and solutions.”
This year, every financial services organization has confronted the importance of resilience. In the context of a crisis, we think of resilience as enabling survival. But from a wider perspective, resilience is about easily meeting the future demands of customers. The first article in this series discussed the importance of resilience, which is receiving renewed
