COVID-19 BANKING: Equity bank ready to restructure more loans
In April 2020, BoU granted exceptional permission to all supervised financial institutions to provide credit relief through the restructuring of loans of borrowers who were affected by the COVID-19 pandemic, these measures could go on as the country experiences the second wave, Equity bank is the latest to pledge to extend relief. According to the bank of Uganda annual supervision report December 2020, overall risk to financial sector stability edged up marginally in the year to December 2020, but remained relatively contained. However, several potential vulnerabilities remain, related to the pace of the economic recovery and its effect on the income and loan repayment capacity of firms and households and banks’ loss absorbency.
