Banks have brought in new measures to help customers affected by the coronavirus.

In the worst-case scenarios, businesses could be hit hard by the Covid-19 outbreak.

If there is an Italy-style lockdown, the economy will undoubtedly suffer.

The Isle of Man Bank, for example, has contacted us to say it recognises that the cashflow of small and medium-sized businesses may be disrupted by the virus

It says it is is committed to supporting ’viable businesses’ in continuing to trade while they implement their contingency plans.

A spokesman said: ’We would urge our customers to contact us early to discuss how we can help support them through the coming weeks.

’Customers look to their bank for help in times of financial difficulty and in this regard we will do all that is possible to support them appropriately through any period of disruption.’

support

Isle of Man Bank is providing the following support package to local business and commercial customers:

â?¢’Proactive outreach’ to those business customers that may be experiencing short-term trading issues due to coronavirus to ensure they are able to access the best possible range of support.

â?¢Its ’relationship managers’ will speak to business customers offering help and support as they form their plans to mitigate the impact of coronavirus.

â?¢Granting of new or increased working capital facilities to support trading businesses that are seeing a lengthening of the order-to-cash cycle and a cost increase as a result of supply chain disruption.

â?¢Up to six-month capital repayment holiday on variable rate lending.

â?¢Temporary emergency loans with no fees.

â?¢Continued work with the government to understand the evolving impacts and appropriately support local businesses.

A spokesman said: ’We understand that some of our personal banking customers may be worried about the effect that contracting the coronavirus could have on their finances, for example due to a drop in income or because of unexpected expenses or bills to pay.

’We are ready and able to offer support to customers who are impacted directly or indirectly by coronavirus, which could include offering or increasing an overdraft or allowing repayment relief for loan or mortgage repayments. Asking for help early is key.

’We would encourage customers who think they may be affected to contact their provider as soon as possible to discuss the support available to them.’

The bank is providing the following support package to customers:

â?¢’Proactive’ support to those customers that may be facing financial difficulty from the impacts of the virus - in the branch or on the phone.

â?¢Defer mortgage and loan repayments for up to three months.

â?¢Temporary emergency funding with no fees.

â?¢Increased cash withdrawal limit of up to £500.

â?¢Continued work with the government to understand the evolving impacts and appropriately support customers.

HSBC has also contacted us to say how it is helping.

For personal customers in financial difficulty as a result of the virus, it says it is able to support finances in a number of ways which may include:

â?¢Short-term support through extending the remaining term of their mortgage, switching rates or switching part or all to interest-only mortgage arrangements.

â?¢Giving customers early access to fixed rate savings accounts without closure charges.

â?¢Support for customers with unsecured debt through reduced payments or breathing space to defer payments due; these solutions are tailored to individual customer need.

â?¢Customers who wish to discuss their financial situation can visit the bank’s website.

For business customers, HSBC has:

â?¢Asked relationship managers to contact customers to see what help their businesses need.

â?¢Launched a helpline to support any customer queries (08000 121 614, open 9am to 5pm Monday to Friday).

In addition, the bank says it will also consider:

â?¢Offering repayment holidays to free up cash within businesses.

â?¢Reviewing overdrafts or working capital loans to allow stock to be held for longer.

â?¢Providing trade finance solutions to support customers with their supply chains.

Sue Fox, the chief executive of HSBC Channels Islands and Isle of Man, said: ’As an island bank, our purpose is to help the island thrive. At this time our role is more important than ever.

’We understand that the finances of some island customers may be affected by Covid-19 so we have a range of support measures and our teams stand ready to help customers through these uncertain times.

’We encourage our personal and business customers to contact us if they are concerned about their finances so we can help find the most appropriate solution for their individual circumstances.’

The bank is working with the government and regulatory bodies to identify emerging issues to make sure customers and businesses have the advice and support they need.

Laurence Skelly MHK, Minister for Enterprise, said: ’I very much welcome HSBC’s package of support for its Isle of Man customers, as well as the wider commitment and support of our financial services sector throughout this very difficult time. The Isle of Man Government is taking every measure and is following the expert advice from Public Health and Public Health England to support our islanders and businesses during this period.

Criminals are taking advantage of the coronavirus outbreak with ’phishing’ emails.

They could offer medical products, guidance or a safe haven for money.

The banks are warning customers to be wary of such offers and to contact the banks directly with queries.