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Although it was feared that the corona pandemic could worsen the balance sheet quality of banks and financial intermediaries, bank stabilisation has not yet been the focus of economic policy measures to overcome the effects of the corona pandemic. Rather, the effects of the lockdown have impacted several sectors of the real economy. So far, stationary retail trade, the tourism sector and hotels and restaurants have been hit by the lockdown. In addition, industry has been particularly affected by an interruption in supply chains. The automotive industry even temporarily halted production completely. The question now is to what extent the corona pandemic may destabilise the banking sector.

The Corona Pandemic and the Stability of the Banking System: The Solution is in the Real Economy