ASSIGNMENT ON CHALLENGES FACED BY BANKS DURING COVID 19.

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Challenges Faced by Banks during Covid 19
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Chapter 1 - Introduction...........................................................................................................2
1.1. Rationale for the Study.....................................................................................................3
1.2. Research Objectives and Aims.........................................................................................3
1.3. Research Questions...........................................................................................................4
2. Chapter 2 – Review of Literature.............................................................................................5
2.1. Gaps in the Review of Literature......................................................................................7
3. Chapter 3 – Research Methodology.........................................................................................9
3.1. Research Philosophy.........................................................................................................9
3.2. Research Design................................................................................................................9
3.3. Data Collection and Analysis of Data...............................................................................9
3.4. Ethical Considerations....................................................................................................10
3.5. Limitations of the Study..................................................................................................10
4. Chapter 4 – Discussion and Analysis.....................................................................................11
4.1. Response of Westpac to the Covid 19 Crisis..................................................................11
4.1.1. Encouraging Customers to Engage in Online Business Transactions.........................11
4.1.2. Encouraging the use of ATM’s for Cash Transactions...............................................11
4.1.3. Introducing Useful Tips for Productivity for Customers working from home...........12
4.1.4. Introducing Protective Gear and Equipment and Sanitized Office Spaces for
Employees..................................................................................................................................12

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4.2. Measures taken by Commonwealth Bank to respond to the Covid 19 Crisis.................13
4.2.1. Encouraging the use of ATM and Online Banking Services for Customers...............13
4.2.2. Encouraging Employees to Work Remote and Ensuring Sanitized Offices for
Employees who cannot work remotely......................................................................................13
4.3. Comparing the Initiatives Taken by Commonwealth Bank with the Initiatives of
Westpac......................................................................................................................................14
5. Chapter 5 – Conclusion and Recommendations.....................................................................15
5.1. Recommendations...........................................................................................................15
References......................................................................................................................................17

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1. Chapter 1 - Introduction
The pandemic triggered by the spread of the corona virus, known also as the Covid 19
pandemic, has brought about an unprecedented health and human crisis. While a number of
measures have been introduced by governments across the globe to control the spread of the
virus, this in turn has led to an economic downturn (Bahai and Reis 2020). At present, there is a
lot of uncertainty about the length and the duration of the virus outbreak and the long term
impact that this is likely to have on the global economy. The latest reports on global financial
stability indicate that the international financial system is already reeling from the impact of this
virus outbreak and if the crisis intensifies any further, it can have a detrimental impact on
international financial stability as a whole (Baldwin and Tomiura 2020). Since the outbreak of
the COVID 19 pandemic, risk asset prices have dropped quite sharply, and risk assets in
particular have suffered a greater degree of decline in comparison to what these had suffered in
the year of 2008 as well as 2009. Many equity markets for example, in both small scale and large
scale economies have endured a rate of decline that is as high as thirty percent or higher and
credit spreads have been seen to jump considerably, for the lower rated firms. Symptoms of
stress are seen to have emerged as well, in short term but major funding markets that include the
international market for American dollars (De Vito and Gomez 2020).
When it comes to the banking sector in particular, it is important to note that banks have
not been directly by the Covid 19 pandemic and its outbreak but still remain the prime focus of
public attention. Banks are located at the heart or at the very essence of every country’s economy
and are seen to provide funding for both individuals as well as for corporations. Stability in the
banking sector is something that is crucial if the economy of a country is to function along

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efficient and productive lines (Fernandez 2020). As a consequence, thousands of customers
around the world are forced to remain in quarantine or lockdown and as such are unable, to pay
for their mortgages or for their credit. Business loans that have been sanctioned to the medium
and small scale enterprises are at a considerable degree of risk as a consequence of the lockdown
that has been enforced (Fernandez 2020). Banks have started responding to the Covid 19 crisis
by already increasing the rate of interest for loans, waiving fees, granting holidays for mortgage
payment, increasing the limits of credit cards while also providing quick and instant access to
fixed deposit accounts for customers who are directly impacted by the Covid 19 virus (Forsyth
2020).
This paper will engage in a detailed analysis of how banks such as the Commonwealth
Bank and Westpac Bank have been dealing with the impact of the crisis brought on by Covid 19
by managing pressure successfully and by ensuring that business operations continue to run as
efficiently as desired.
1.1. Rationale for the Study
There isn’t much literature on how deeply and negatively the Covid 19 crisis has
impacted the banking sector, and the measures that can be taken by banks and financial
institutions to overcome this crisis. As a result, the present study will attempt to see how banks
like the Commonwealth Bank and Westpac are impacted by and responding to the crisis of
Covid 19 and in the process, it shall effectively address the gaps that are seen to exist in the
literature in this respect.
1.2. Research Objectives and Aims
The key objectives and aims of this research are as follows –

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 To assess the impact that Covid 19 has on business operations
 To determine the specific impact that Covid 19 has had on the banking sector
 To assess how banks have been conducting associated operations in the light of the crisis
brought on by Covid 19
 To compare the responses of the Commonwealth Bank to the Covid 19 crisis with the
responses by Westpac
 To generate a series of recommendations that can be taken into consideration by the
Commonwealth Bank and Westpac for bringing about an improvement in their
operations.
1.3. Research Questions
The important research questions that shall be addressed through this study are as follows
–
RQ 1 – What is the impact of Covid 19 on business operations around the world?
RQ 2 – What is the specific impact that Covid 19 has had on the banking sector?
RQ 3 – How have banks been conducting associated operations following the outbreak of the
Covid 19 pandemic?
RQ 4 – How do the responses of the Commonwealth Bank to the Covid 19 crisis compare with
the responses of Westpac?
RQ 5 – What are some of the ways and means by which Westpac Bank and Commonwealth
Bank can improve their operations in the light of the Covid 19 crisis?