Nonperforming loans are unfortunate consequences of an economic crisis, but their severity varies depending on the nature of the crisis and remedial responses. In Europe, as recovery kicks in, speculation abounds regarding the intensity of the inevitable NPL aftershock. Will it be a tsunami or a wave? What can be done to lessen its force?
Despite the trauma inflicted by the pandemic worldwide, the financial sector has stood strong, with Islamic finance showing particular resilience and continuing its rapid growth, especially in the Middle East, Africa and Southeast Asia—a growth that is being aided by digital technology as new digital Islamic banks sprout up worldwide.
Physical distance is needed to combat COVID-19 but has also bolstered the move to omnichannel payments. Customers enjoy paying in-store, but many have discovered the convenience of other methods and appreciate an integrated experience offering varied channels. Sellers that adopt omnichannel capacity will find customer satisfaction follows.
In October 2018, S&P Global Ratings issued a stark warning pertaining to China’s mounting debt problems. According to the ratings agency, the country’s local governments may be sitting on a pile of debt worth up to 40 trillion yuan ($6 trillion).