Banks rethink operations to cope with coronavirus in Asia

Bloomberg

Global banks including UBS Group AG and Bank of America Corp are broadening their contingency plans across Asia to ensure they can keep trading and other operations running as the spread of the coronavirus accelerates outside China.
Credit Suisse Group AG is among lenders starting to implement alternative work arrangements in South Korea, adding Asia’s fourth-largest economy to the list of areas where staff are being separated into different locations. That way, operations can continue should an infection prompt the closure of one office, according to people familiar with the matter. Banks are considering similar moves in Japan.
Firms from Shanghai to Hong Kong and now Seoul are rethinking how they work and travel to keep staff safe and ensure business continues. Already, deals involving Chinese companies have slumped as have initial public offerings in Hong Kong. HSBC Holdings Plc and Singapore’s three biggest banks have warned the virus may force them to set aside more money for soured loans.
In South Korea, infections have now topped 1,200, making it a new hot spot for the virus, which has killed more than 2,700 people globally. Infections in South Korea jumped from only 51 a week ago, with a US soldier stationed in the country becoming the first reported American military case. About two dozen countries including Singapore have levied restrictions on travellers from South Korea, while flights and tour-group trips to the nation are being cancelled.
In Japan, Prime Minister Shinzo Abe called for major sporting and cultural events to be called off, postponed or scaled down over the next two weeks, saying the move was crucial in preventing the domestic spread of the virus. Japan has 164 confirmed cases so far.
The rapid spread of the virus has prompted the Bank of Japan to ask major banks about their preparedness for a worsening of the outbreak, people with knowledge of the matter said. Initial findings from the talks indicate that large financial institutions are well placed to deal with the situation, the people said, asking not to be identified.

UBS has put South Korea on a so-called level 2 as part of it business continuity planning, in line with Hong Kong and Singapore. China is categorized at level 3, signalling the highest risk, one of the people said.
South Korea is rated as an “increased caution” at HSBC, meaning business travel can continue but that employees should reconsider the need for the trip and also avoid the heaviest hit areas of Daegu and Gyeongbuk, a spokeswoman said. Morgan Stanley and Standard Chartered Plc have also restricted travel to and from South Korea.
Morgan Stanley employees traveling from South Korea, or in close contact with someone who has been there, need to work from home for 14 days afterwards, a person said.