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Finmar Final Examination

The COVID-19 pandemic has significantly impacted financial institutions and businesses. For financial institutions, lending losses are expected to increase as businesses lose revenue and individuals lose income, lowering bank capital and earnings. To cover losses, financial institutions have pursued strategies like lowering interest rates to maintain lending. The pandemic has also accelerated digital transformation trends. For businesses, many have been forced to close, severely harming industries like travel, events, and personal services. However, some businesses in online retail, delivery, education and remote work have grown. The pandemic's long term impacts remain uncertain, but it has taught lessons about resilience and adapting to challenges.

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Carylle Ramos
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67 views

Finmar Final Examination

The COVID-19 pandemic has significantly impacted financial institutions and businesses. For financial institutions, lending losses are expected to increase as businesses lose revenue and individuals lose income, lowering bank capital and earnings. To cover losses, financial institutions have pursued strategies like lowering interest rates to maintain lending. The pandemic has also accelerated digital transformation trends. For businesses, many have been forced to close, severely harming industries like travel, events, and personal services. However, some businesses in online retail, delivery, education and remote work have grown. The pandemic's long term impacts remain uncertain, but it has taught lessons about resilience and adapting to challenges.

Uploaded by

Carylle Ramos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Ramos, Carylle C.

BSA AS1
FINMAR FINAL EXAMINATION
1. What can you say about how financial institutions face the effect of covid-19 pandemic?
- The spread of Covid-19 has stopped economic activity in multiple areas, with
serious consequences for businesses and individuals. Companies that rely on direct
client contact, such as hotels and transportation, are losing revenue, and households
that work in these industries are losing income. The financial institution is also affected.
Banking services can be done remotely but without direct client contact, the
institution's connection to the economy as a source of payment, savings, credit, and
services extends the harmful effect of virus to banks and other financial institutions. At
the same time, the financial institution has a responsibility in assisting businesses and
people during this period of lower revenues and incomes, which has led financial
regulators and governments to take regulatory initiatives. Companies that have stopped
operation lose revenue and may be unable to fulfill their debts. Households with
members who have lost their jobs or have been fired may not be able to repay their
loans due to a lack of income. This will result in missed revenue as well as losses,
lowering earnings and bank capital.

2. Site a situation or example how financial institutions provide strategies to cover up


losses.
- First example, financial institutions aim for low interest rates, sometimes as low
as zero. This decreases the cost of bank refinancing and to make sure that they have
sufficient funds to continue lending to the economy and second example, as a result of
the trend toward digitalization, social distancing may become the new normal, this
could mean more branches closing and a tendency to focus on phone and internet
banking. Just like GCash, BPI mobile and many more.

3. Reflection on covid 19 impact on business


-Many businesses have been forced to close as a result of the COVID-19
outbreak, causing extreme losses in most industry sectors. Rough challenges face
retailers and brands, including those relating to health and safety, supplier, staff, net
income, customer needs, sales, and marketing. However, overcoming these obstacles
does not promise a great future, or even a future at all. This is because, once the
pandemic is over, we will be thrust into a world that is significantly different from the
one that existed prior to the outbreak. Many markets have gone, particularly in tourism
services. All organizational functions are designed to prioritize and maximize spending,
as well as to postpone tasks that are not valuable in the current environment. Online
communication, entertainment, and shopping are all seeing incredible growth at the
same time. Since people stay at home and businesses close down, the COVID-19
pandemic is expected to destroy many well-known brands in many industries. The travel
business has been severely harmed; hotel rooms are empty, airlines have reduced their
workers, and tourism destinations are unlikely to make any money. Expos, conferences,
sports activities, and other huge gatherings have all been postponed. Lockdowns have
also forced a stop to consultations in general and personal services such as hairdressers,
gyms, and taxis. Some businesses are thriving, while others are struggling. This is true
for a lot of Internet-based enterprises, including online entertainment, food delivery,
online shopping, online education, and remote work solutions. People's consumer
habits have also changed, with an increase in demand for takeout, snacks, and alcohol,
as well as cleaning supplies, as we spend more time at home. Healthcare and medicines,
as well as herbs and vitamins, are other industries that are doing well. This pandemic
taught a lot of lessons. This may provide us with unexpected challenges, but look at how
far we've come. We should never give up and continue to strive for our goals in life.
Think positively because wonderful things come to those who think positively.

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