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Law360, London (April 2, 2020, 9:59 PM BST) -- A global forum of central bankers on Thursday urged governments to recognize some financial services professionals as essential staff in order to keep markets operating smoothly during the COVID-19 outbreak.
The Financial Stability Board met remotely on March 30 to discuss the arrangements its members have put in place to keep their markets operating smoothly during the crisis and to maintain the supply of credit to homes and businesses.
The FSB drew attention to "the critical nature of many financial services" and the "importance of ensuring their operation throughout the pandemic."
The forum said that some key workers will need to remain on site in order to keep up normal operations of financial services. These include providing customers with access to cash, keeping branches and call centers open and processing claims under government support programs.
The FSB said that banks in areas with social distancing rules in place should find ways to facilitate having most of their employees work from home, but should make sure key workers remain on site so their critical functions can continue.
It noted that many financial services firms have already managed to move to extensive remote working arrangements amid the coronavirus outbreak, which has now infected more than 900,000 people worldwide.
Central bankers are working with local governments to make sure some key workers are able to remain on-site in financial services firms, the FSB said. It also urged health and safety authorities to formally recognize some financial professionals as essential personnel.
The FSB said its members would work closely together and share information as the crisis develops, as banking operations span multiple jurisdictions and will face different COVID-19 rules in different states.
The forum said it would coordinate policy responses to maintain global financial stability as the public health crisis continues. It said it would also regularly assess the financial risks posed by the outbreak and sharing information on the economic threats.
The FSB said some of its members had already made plans to release available capital and liquidity buffers.
The European Central Bank said in March that it had relaxed various capital requirements for European Union banks to encourage lending and offset the impact that the coronavirus scare is having on the economy.
The ECB said it was discussing individual measures with banks, such as adjusting deadlines for meeting rules. The authority said its temporary measures would be enhanced as national regulators begin relaxing the countercyclical capital buffer requirements.
The Bank of England reduced the rate of the requirement from 1% to 0% on Wednesday to temporarily dissolve the buffer in order to release £190 million for banks to lend to businesses.
Britain's central bank has also lowered bank refinancing to 0.25% from 0.75% to encourage spending as investors are steering clear of risky assets since the coronavirus outbreak.
--Additional reporting by Najiyya Budaly. Editing by Peter Rozovsky.
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