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The Impact of Covid-19 on Activities of Banks

Author

Listed:
  • Kamelia Assenova

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The Covid-19 pandemic is causing unpredictable disruption in the global economy. The pandemic affects every sector of the economy. As a result of this virus, the world economy is weakening, and this is also happening in Bulgaria. The banking sector is an important component of every economy. The banks have a fundamental role as providers of payment services, liquidity, and funding to businesses and individuals during the Covid-19 crisis. This paper aims to examine the impact of Covid-19 on bank liabilities and assets during the crisis and their role in the recovery of the economy. During the Covid-19 crisis, the business reduces its deposits because it does not have enough purchases and receivables. Firms need lending to cover inequality between in- and outflows, decide their liquidity problems, and ensure the working capital to restart business. The risk during the Covid-19 crisis rises and the quality of credit portfolio will deteriorate, by increasing non-performing loans.

Suggested Citation

  • Kamelia Assenova, 2024. "The Impact of Covid-19 on Activities of Banks," Nauchni trudove, University of National and World Economy, Sofia, Bulgaria, issue 5, pages 1-49–59, December.
    • Handle: RePEc:nwe:natrud:y:2024:i:5:p:49-59
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    File URL: https://unwe-research-papers.org/bg/journalissues/article/11643
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    More about this item

    Keywords

    Covid-19; banks; credit;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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