Managing the COVID-19 pandemic: Preliminary evidence from global banks

Abstract

The COVID-19 pandemic represents the most complex test for financial institutions since the global crisis of 2007. During this period, the boards of financial institutions, especially banks, had to make strategic decisions quickly, to address the effects of this crisis efficiently and effectively. Boards had to make the right decisions to withstand the shocks caused by the pandemic. The role of the board (or supervisory board) in managing banks has been under scrutiny by academic researchers and professionals during the current pandemic crisis. Since the outbreak of covid-19, boards have faced many tough decisions. Boards promptly facilitated the introduction of a number of COVID-19 response policies, including the establishment of specific teams to prevent and control the effects of the pandemic, to support the community, and to the protect and support employees and clients. The objective of this paper is to understand the role of boards of global banks during the COVID-19 pandemic, in particular to determine which were the most effective policy decisions and to outline the related underlying trends. The results of this research may allow the identification of best practices for the management of financial institutions, and provide a useful reflection for the various stakeholders, including regulatory and supervisory authorities.