The financial regulator of Germany is expecting the worst of the coronavirus or COVID-19 crisis is still to come, although there was no immediate threat to financial stability due to the pandemic.
But as many nations in Europe and beyond see increasing coronavirus infection rates and the governments struggle with how to respond. BaFin President Felix Hufeld stated he was concerned about the weakest 20 percent or 30 percent of the institutions he monitors.
Worst of COVID-19 Still to Come
"We will not get out of this thing painlessly. That much is for sure. The hard part is still to come," Hufeld said on Wednesday at a banking conference at which he and other panelists were separated on stage by plastic screens.
Earlier, Deutsche Bank Chief Executive Christian Sewing forecast that the economy would not return to normal this year or next and that many sectors will be running at 70 percent-90 percent capacity, with 'serious consequences'. "Many companies will have to adjust to this and manage to be profitable with longer-term lower revenues," Sewing said.
(With agency inputs)