The corona pandemic has exposed banks in Pakistan to various challenges including muted credit risk increase, reduced fee income due to slowdown in economic activity, branch closures and cyber security threat management, revealed the quarterly report of MCB Bank, ending 31 March 2020. Credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. Therefore, the risk management function of the bank is regularly conducting assessments of the credit portfolio to identify borrowers most likely to get affected due to changes in the business and economic environment, the report added. The report said the bank had further strengthened its risk appetite and related credit review procedures in the light of Covid-19 which would insulate the bank from any unforeseen shock. It said the financial risk management objectives and policies adopted by the bank were consistent with those disclosed in the consolidated financial statements for the year ended December 31, 2019. These risk management policies continue to remain robust and the bank is reviewing its policies regularly and conducts rapid portfolio reviews in line with…
