An uptick in closings is likely, but how many institutions go under and how fast will depend on a variety of factors, including the duration of the pandemic.
The central bank will prioritize monitoring and outreach while reducing examination activity due to the coronavirus pandemic until at least the end of April.
The move come a day after the Bank of England cut rates and introduced a series of emergency measures, including capital requirements and a lending program for smaller companies.
Banks with the most exposure to oil and gas companies say they’ve added capital and changed their borrower mixes since the 2015 market fall. But skeptics question whether they can stave off losses if low prices endure.
