NBP foresees limited credit offtake

National Bank of Pakistan (NBP) management is expecting that the credit offtake will remain restricted in the coming months as supply chains adjust to the economic impacts. Therefore, the risk management function of the bank is regularly conducting assessments of the credit portfolio to identify borrowers and sectors most likely to get affected due to changes in the business and economic environment locally as well as globally.

The bank is continuously reviewing the portfolio to identify accounts and industries susceptible to higher risk, resulting from the COVID-19 outbreak.

According to the 1Q2020 report of the bank, the coronavirus (COVID-19) outbreak is causing widespread concern and economic hardship for consumers, businesses and communities across the globe.

It said the Asset and Liability Committee (ALCO) of the bank is continuously monitoring the liquidity position and the daily liquidity monitoring report is also being prepared to notice the changes in the liquidity profile of the bank.

The report has pointed out that the currently maintained liquidity buffer is sufficient to cater to any adverse movement. Moreover, the recent fall in the interest rate has resulted in substantial Mark-To-Market (MTM) gain in government securities portfolio, which can be realized in case of any adverse liquidity situation, it added.

The bank is closely monitoring the situation and has undertaken required actions to ensure the safety and security of the bank staff and maintenance of service to its customers. The senior management of the bank, including the COVID Crises Management Team closely monitors the situation and it takes timely decisions to resolve any concerns.

The bank has a duly tested Business Continuity Plan (BCP) in place. It has communicated with its customers on how they can connect with the bank through its digital and online channels.

The bank continues to take measures to ensure that service levels are maintained, customer complaints are resolved and turnaround times are monitored, in order for the bank to meet the expectations of its stakeholders.

The bank's operations have stayed highly resilient, almost more than 95% branches remain open to facilitate its customers. Further, the bank has deployed all necessary measures for the health and safety of its employees to prevent them from this pandemic situation.

Since the COVID-19 pandemic poses heightened cyber security risks, therefore, the bank has taken appropriate actions to monitor and respond to these evolving cyber security risks and adopted a heightened state of cyber security as transitioned employees to a remote working option, where required.

The associated risks and implications posed by the pandemic have been assessed to protect the Bank's critical information assets from the increasing cyber threats and to ensure compliance with the regulatory controls.