COVID-19 pandemic impact on banking sector: A cross-country analysis

Shabir M., Jiang P., Wang W., IŞIK Ö.

Journal of Multinational Financial Management, cilt.67, 2023 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 67
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1016/j.mulfin.2023.100784
  • Dergi Adı: Journal of Multinational Financial Management
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Business Source Elite, Business Source Premier, EconLit
  • Anahtar Kelimeler: COVID-19 pandemic, Bank stability, Bank performance, Global banking
  • Sivas Cumhuriyet Üniversitesi Adresli: Evet

Özet

© 2023 Elsevier B.V.This study examines the effects of the COVID-19 outbreak on the performance and stability of the banking sector. Our sample consists of 2073 banks in 106 countries from 2016Q1 to 2021Q2. We employ several alternative bank performance and stability measures for a comprehensive analysis and robustness. The findings show that the COVID-19 outbreak has significantly reduced bank performance and stability. These results are consistently observed across several geographical regions and countries’ income classifications. Additional analysis shows that the adverse impact of COVID-19 depends on the characteristics of the bank and market structure. While a better regulatory environment, institutional quality, and financial development have significantly increased the strength and resilience of banks. These findings provide practical implications for regulators and policymakers in the face of unprecedented uncertainty caused by the COVID-19 pandemic.