Olga Gouveia is Principal Economist in the Financial Systems Unit in BBVA Research with focus on the analysis of European Financial Systems.Previously, Olga Gouveia worked in Moody's as Vice-President Senior Analyst at FIG, with leading analytical responsabilities for the ratings of Spanish and Portuguese banks.Prior to that she worked as an Analyst and Associate in BPI Private Equity in Oporto.She obtained a Degree in Economics from the University of Oporto, in Portugal in 1998 and an International MBA from IE Business School in 2003.
Unlike in previous crises, lending has not slowed down during the pandemic—at least not in all segments— with a fall in household loans, but a big increase in corporate lending.
Asset quality deteriorated as a slowing economy continues to weigh on lenders. Banks' profits are suffering pressure on narrowing net interest margin, lower pricing capability, and rising provisions. Although the interconnectedness between banking and the shadow banking system has increased, the room for upside is limited.
The crisis caused by COVID-19 is showing its first impacts on the banking sector. Our analysis assesses the impact on the sector of seven factors and its trends: monetary policy, digitalization, regulation, economic growth, new entrants, competitive landscape and government support.