The novel coronavirus (COVID-19) pandemic is spreading around the globe rapidly. COVID-19 has taken its toll on not just human life, but businesses and financial markets too, the extent of which is currently indeterminate.
While COVID-19 has had an impact on almost all entities, either directly or indirectly, some of the worst hit sectors are aviation, hospitality and retail with more and more sectors coming under its radar with widespread lockdowns being enforced across the world. Financial services have also been affected with the inability of borrowers to keep up with repayment schedules.
Credit Unions need to carefully consider the implications of this situation on bad debt provisioning.