Entrepreneurs concerned – how will the bank respond?
- Economy
It’s clear that the coronavirus crisis will have far-reaching consequences. Many entrepreneurs are already noticing those consequences. How are banks, including ABN AMRO, dealing with this?
“Entrepreneurs are certainly concerned,” Geert Gladdines points out on the website of theDutch Bankers’ Association NVB. As a business services adviser at NVB, he has noticed a clear and substantial decline in turnover in a number of sectors.
ABN AMRO economist Albert Jan Swart shares this view and says companies will experience even more problems due to the coronavirus in the future: “According to BloombergEconomics, the Chinese industry is operating at 60 to 70 per cent of its capacity. We’re not sure whether that’s true, though. Roughly 30 per cent less ships are leaving China for the port of Rotterdam. And the ships currently in transit are carrying 30 to 50 per cent less load.”
The real impact on entrepreneurs is yet to come, Albert Jan Swart believes. “Event organisersare being confronted with cancellations. They need to cut their working hours immediately. Companies reliant on components from abroad are starting to run into problems, as are the travel and catering industries. Beyond that, we’re still in the calm before the storm.”
We are experiencing a unique situation. Understandably, entrepreneurs are looking topolitics and banks for a solution. “Banks understand that this exceptional situation is a huge challenge for entrepreneurs and are ready to answer their questions,” Geert Gladdines says on behalf of the banks. ”If more needs to be done, we will establish what is appropriate and possible for each case individually. We may for example offer additional liquidity.” The European Central Bank and the government are presenting measures such as tax deferral and bond-purchasing programmes.
Assistance for clients
ABN AMRO is currently helping entrepreneurs in multiple ways – by sharing knowledge, ofcourse. Group Economics and Sector Advisory have published analyses of the impact of the coronavirus on the economy and Dutch businesses.
We are looking at the sectors that are likely to be impacted and are contacting our clients to discuss the situation. We’re also freeing up capacity to be able to talk at length to entrepreneurs who reach out to us. We will provide advice whenever it’s needed. Based on a liquidity forecast, we can temporarily support clients by offering extra liquidity. The situation will be assessed on a case-by-case basis. We are in close contact with the Ministry of Economic Affairs, employers organisations and regulators to work together to offer help where needed.
ABN AMRO events cancelled
Of course,we are also a business ourselves. Because of our role in society, we takeprecautions as well. At ABN AMRO and Circl, events have been cancelled or postponed. Staff is working in separated teams at home and at the office, and it is no longer possible to travel between different bank locations and departments.