The Impact of Covid-19 on Activities of Banks

Kamelia Assenova ()
Additional contact information
Kamelia Assenova: University of National and World Economy, Sofia, Bulgaria

Nauchni trudove, 2024, issue 5, 49–59

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.

Keywords: Covid-19; banks; credit (search for similar items in EconPapers)
JEL-codes: E32 E51 G21 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://unwe-research-papers.org/bg/journalissues/article/11643 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nwe:natrud:y:2024:i:5:p:49-59

Access Statistics for this article

More articles in Nauchni trudove from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().