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COVID-19, Corporate Non-performing Loans, and Corporate Lending Dynamics: Evidence from Russian Regions

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  • Polina Popova

    (National Research University Higher School of Economics)

Abstract

The COVID-19 pandemic had an extremely negative impact on the corporate sector across many economies. This study examines the relationship between the spread of the COVID-19 virus and the quality of corporate loan portfolios and the volume of corporate loans in Russian regions. Using cross-regional variation in the number of COVID-19 cases in Russia from April 2020 to February 2022, we document lower corporate loan portfolio quality among banks operating in regions with higher COVID-19 rates, as well as an inverse relationship between corporate non-performing loans and the volume of corporate loans issued by Russian banks. We conclude that Russian banks adjusted their credit policy, observing a decrease in the quality of corporate loan portfolios. We also quantitatively analyze specific business support measures introduced in Russian regions during the COVID-19 crisis

Suggested Citation

  • Polina Popova, 2024. "COVID-19, Corporate Non-performing Loans, and Corporate Lending Dynamics: Evidence from Russian Regions," HSE Working papers WP BRP 93/FE/2024, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:93/fe/2024
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    More about this item

    Keywords

    COVID-19; Policy interventions; Company loans; Banks; Russia; Regions;
    All these keywords.

    JEL classification:

    • Z - Other Special Topics

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