• Mid- and long-term economic downturns are likely to arise in the long battle against the pandemic
• CTBC Bank’s push towards digital, long-term preparation and immediate response to the pandemic have ensured little to no interruptions in its operations
• Digital transformation will accelerate in all industries, including the financial services sector, once the pandemic is over

COVID-19 has changed public behaviour, as people now avoid travel and physical consumption in response to disease prevention policies. Nationwide or city-level lockdowns – as well as the partial shutdown of businesses – have caused a supply shock, making delays rife in the import of raw materials and the delivery of exports. These conditions brew a perfect storm for businesses to struggle financially, postpone investments, and even close down – resulting in employees being forced to resign, take unpaid leaves, or accept pay cuts.

Although disease prevention measures, as described previously, vary from country to country, they are not permanent solutions considering their negative impacts on the economy. That is why social distancing will prevail as a principle of management.

Vaccine development will take at least 12 to18 months. Thus, the battle against the pandemic will be a long one, with possible economic downturns for the mid- and long-terms.

Addressing COVID-19 through monetary and fiscal policies

Governments have been focusing on monetary and fiscal policies in response to the impacts of COVID-19, some are even working on both. Easing monetary policy through QE (quantitative easing) and reducing interest rates go hand-in-hand with vast sums of financial assistance, which serve as emergency disease prevention funds and provide low-interest loans to affected industries. These funds also ease taxes and processing fees on individuals and businesses.

Take Taiwan’s monetary policy as an...

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