COVID-19 updates: Financing and financial sectors
March 24, 2020
The world is in an unprecedented situation with the outbreak of the 2019 novel coronavirus (officially renamed, “COVID-19”). Numerous countries have instituted stringent policy measures to prevent the spread of the outbreak. While, for now, such policy measures comprise of widespread travel restrictions, workplace closures, city-wide lockdowns and mandatory quarantines, with the World Health Organization having declared COVID-19 as a pandemic, there are growing concerns of restrictions on trade with infected regions being imposed soon.
COVID-19 has now started leading to disruption of businesses across sectors and jurisdictions, which will have a direct impact on financial markets and products. In India, the banking sector continues to operate despite COVID-19. The main measure imposed by the regulator is in the context of business continuity which brings into focus the contingency plans and business preparedness of such banking firms and the expectation of the financial regulator in such times. It is important that banks, financial institutions and corporates are aware and prepared for legal issues and challenges that COVID-19 will pose on their financial and commercial arrangements.