COVID-19 Member Perspectives – May 14, 2020

The following includes information from RMA’s Coronavirus Blog, which provides market intelligence on how financial institutions are managing coronavirus risks in various ways. For access to this blog, which is updated regularly and includes peer sharing by experienced risk managers, become an RMA member.

Last week’s calls with member institutions brought concerns about the Main Street Lending Program, discussions regarding managing the PPP process, re-entry to the workplace, and much more. (For insight into these calls, click here. If you would like to join any of these calls, reach out to the host listed.) Below is a small sampling of what was discussed:

  • Banks are continuing discussions about the re-entry to the workplace for employees. RMA has developed principles-based guidelines entitled, “SARS-COV-2 Principles of Workforce Return to Facilities,” which address the questions, scenarios, and challenges confronting financial institutions as they transition work-from-home employees back to offices and branches. Members can access the guidelines here:

  • Bankers remain concerned that they need more clarity as to the forgiveness details regarding the PPP and are waiting for the regulators to share more. Several banks are building flexibility into their planning if the government makes changes as the forgiveness period begins later this year. RMA is communicating regularly with the Treasury Department and will be sharing banker concerns as well as government updates to the membership. 

  • Some banks reported concerns that since a borrower needs to be a “pass” credit as of December 31, 2019, most of the credits in the workout portfolio would not qualify for the Main Street Lending Program. Banks also had concerns about the ability to maneuver when another party (Treasury) is in the relationship.

Please visit RMA’s Risk Readiness Special Coverage web page for webinar recordings on the pandemic. This past week we offered two Special Coverage webinars on the following topics:

  • Auditing Financial Services Companies Operating in a Virtual Business Model
    Sponsored by the Risk Management Association (RMA) Internal Audit Society (IAS), this webinar explored the challenges, pitfalls, and best practices related to working and auditing from home. Given the changing risk profiles of financial services companies during the pandemic, the presenters shared real life examples of how, and what, they are focusing on as audit professionals in a virtual world.

  • COVID-19: Financial Impacts and Boardroom Perspectives
    Hosted by Oliver Wyman, this webinar focused on issues Board members are facing as the U.S. banking industry manages the financial consequences of the COVID-19 pandemic.

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