BOE Boosts Stimulus as U.K. Battles Second Wave of Covid-19

Summary:The Bank of England announced another dose of bond purchases, becoming the first major central bank in Europe to boost stimulus measures in response to a second wave of coronavirus infections. The European Central Bank has signaled that it is also readying more stimulus for as soon as next month, as countries including France and Germany close parts of their economies to halt the rise in infections. But economists have warned that central banks can only do so much to counter the effects of the pandemic and have called on governments to do more.

Questions:

1. What steps has the Bank of England recently taken and why?
2. What have other central banks done recently in connection with Covid-19 and economic recoveries?
3. In addition to the monetary policy measures undertaken, what fiscal policy measures are countries pursuing?
4. Why are some economists arguing for more than monetary policy initiatives?

Banks in Europe Face Potential $1.7 Trillion Covid-19 Cliff

Summary:The economies of Europe plunged this year, and fresh lockdowns in many countries are weighing on nascent recoveries. Yet the unprecedented levels of government and financial-sector support, including repayment moratoriums sometimes covering a quarter of all outstanding loans, have kept households and companies afloat. That means banks haven't had to recognize those loans as potentially soured.

Questions:

1. What is the explanation for the decrease in non-performing loans (NPLs) across selected European banks?
2. What measures were put in place across selected European countries to address the financial strain of the pandemic?
3. Why are regulators concerned by the decline in NPLs?
4. How might accounting guidelines potentially contribute to the perceived health of European banks' loan portfolios?