The views and opinions expressed in this article are those of the thought leader as an individual, and are not attributed to CeFPro or any particular organization.
By Phil Masquelette, SVP/CRO, Ulster Savings Bank
How has COVID-19 further impacted profitability in an already heavily regulated environment?
The financial sector, as a whole, has been experiencing substantial credit losses due to the pandemic, despite the Paycheck Protection Program (PPP) and other governmental efforts. Mandated closures of entire sectors of the economy with mass inoculation of the population have been instituted from a public health perspective to halt and ultimately to minimize the devastation of death and suffering imposed on humanity by this dreadful disease.
Travel and leisure, restaurants and hotels and related business industries were vaporized. Passenger cruise liners have not been welcome in US ports of call. And shopping malls remain vacant. Unemployment rose precipitously and moratoria of residential rental and mortgage payments occurred, and are ongoing. Some economic sectors have profited, yet many have not.