28 May 2020
Rodrigo Coelho and
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Governments and banks have introduced payment deferral programmes to support borrowers affected by Covid-19. But deferred payments are not forgiven and must be repaid in the future, raising prospective risks to the banking system. Thus, they should be designed to balance near-term economic relief benefits with longer-term financial stability considerations.
The Basel Committee on Banking Supervision (BCBS) and several prudential