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COVID‐19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres

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  • Dariusz Wójcik
  • Stefanos Ioannou

Abstract

This paper offers an informed commentary on the actual and potential impacts of the pandemic on financial markets, sector and centres, grounded in literature on financial centres, the state‐finance nexus, and trends affecting the landscape of finance since the global financial crisis. We expect a slowdown in new financial regulation, continued firm‐level consolidation, and a continued rise of business services related to finance. The application of new financial technologies is likely to accelerate, affecting retail banking in particular, but will not necessarily be led by FinTech firms. Local and regional financial centres are likely to face larger challenges than leading international centres. As the panic and partial recovery in financial markets in March and April 2020 highlighted the significance of the international monetary hierarchy, with the US$ in the lead, a radical shift of financial power to Asia seems unlikely.

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  • Dariusz Wójcik & Stefanos Ioannou, 2020. "COVID‐19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(3), pages 387-400, July.
    • Handle: RePEc:bla:tvecsg:v:111:y:2020:i:3:p:387-400
    DOI: 10.1111/tesg.12434
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    References listed on IDEAS

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    11. Li, Sufang & Xu, Qiufan & Lv, Yixue & Yuan, Di, 2022. "Public attention, oil and gold markets during the COVID-19: Evidence from time-frequency analysis," Resources Policy, Elsevier, vol. 78(C).
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    13. Zhang, Ying & Andrew, Jane, 2022. "Financialisation and the Conceptual Framework: An update," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    14. Okey Peter Onyia, 2021. "New trends in financial service delivery and corporate/individual customers′ financial adjustments consequent upon the COVID-19 global pandemic," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(4), pages 203-204, December.
    15. Qinghua Fu & Jacob Cherian & Khalil-ur Rehman & Sarminah Samad & Mohammed Arshad Khan & Mohammad Athar Ali & Laura Mariana Cismas & Andra Miculescu, 2022. "Enhancing Employee Creativity in the Banking Sector: A Transformational Leadership Framework," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    16. Michał Buszko & Witold Orzeszko & Marcin Stawarz, 2021. "COVID-19 pandemic and stability of stock market—A sectoral approach," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-26, May.

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