Banks are making huge interest income
(WorldNews Business)

BANKS did well in the first quarter of 2020. And chances are their performance during the second quarter will also be OK — thanks to their aggressive investment in government debt papers and modest growth in private-sector lending. Relaxed rules for the treatment of bad loans and provisioning against them in the wake of Covid-19 may help banks in the second quarter. But a possible increase in the loan infection ratio of most borrowers hit by the lockdowns and recession may keep credit demand of companies and consumers low. That will likely result in limited lending to the private sector and will minimise banks` interest income from this source. Net interest income of 17 out of 20 listed...