 COVID-19 and policy responses: Early evidence in banks and FinTech stocksJakhongir Kakhkharov and Robert J. Bianchi Pacific-Basin Finance Journal, 2022, vol. 74, issue C Abstract: The Australian government and Reserve Bank of Australia responded to challenges posed by the COVID-19 pandemic with a number of rapid interventions within a short period of time in early to mid-2020. We examine the impact of news relating to COVID-19, monetary policy interventions, containment measures, and the unwinding of restrictions on Australian bank and FinTech stock prices. The global pandemic was caused by factors outside the banking sector and capital markets, therefore, the policy responses from this unique crisis provides us with new knowledge. Bank and FinTech stock prices were more sensitive to the government's macroeconomic announcements and the unwinding of containment measures than to monetary policy interventions in this unique environment. The response of banks and FinTechs to COVID-19 related macroeconomic decisions is consistent with the response of bank stock prices in previous financial crises. This finding suggests a stronger emphasis on macroeconomic announcements is required as a stabilizing policy tool when managing future crises from outside the banking and capital market sectors. Keywords: COVID-19; Crisis; Event studies; Banks; FinTech; Monetary policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:74:y:2022:i:c:s0927538x2200110x DOI: 10.1016/j.pacfin.2022.101815 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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