The Impact of Covid 19 on Activities of Banks
The Impact of Covid 19 on Activities of Banks

Author(s): Kamelia Assenova
Subject(s): Economy, Business Economy / Management
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: COVID 19; economic cycle; banks; credit
Summary/Abstract: The COVID-19 pandemic is causing unpredictable disruption in the global economy. The pandemic affects every sector of 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 provider of payment services, liquidity and funding to the business and individuals in the time of COVID-19 crisis. This paper aims to examine the impact of COVID-19 on bank liabilities and assets during the crisis and their role for the recovery of the economy. During the COVID19 crises the business reduces its deposits, because it does not have enough purchases and receivables. The firms need the usage of lending to cover inequality between in- and outflows, decide their liquidity problems and ensure the working capital for restarting of business. The risk during the COVID-19 crisis rises and the quality of credit portfolio will deteriorate, by increasing non-performing loans.

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