IGTA Journal - Winter 2020/2021

some other parts of the economy and emerging business will soak up part of the workers laid off; they will not be able to absorb all available work forces. Risks on banking sector in case of massive bankruptcies If we face mass bankruptcies after the pandemic and when we will be back to a “certain” normal, some banks may be in difficult situations with lots of default or non-performing loans. Financial institutions could take a large part of the hit, even if they are more robust than during the GFC. Banks have suffered the last decade for many reasons including heavier regulations and negative interest rates. It is important to contemplate ways to wind down these corporations at risk without damaging the overall economy recovery we all expect. Let us be realistic: the recovery will not be as easy as some people expect. Number of companies facing difficulties have postponed digital transformations and business revamping. They may be brutally impacted (paradoxically) when the crisis will be over. When blood is flowing and you got a bleeder, you do not realize your real physical state. When companies will leave the Central Banks intensive care, the zombie ones may be in real trouble and we will not be surprised to see number of bankruptcies. IGTA eJournal | Winter 2020/21 | 36