Countercyclical Capital Buffers and Credit Supply: Evidence from the COVID-19 Crisis

Neef, H; Schandlbauer, Alexander; Wittig, Colin

doi:10.2139/ssrn.4052573

Cited by 2 publications

(1 citation statement)

References 26 publications

(26 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“… Demir and Danisman (2021) show that stock returns of banks with a large size, lesser non-performing loans, well capitalization, and higher deposits are more resilient to the pandemic. Dursun-de Neef et al (2022) show that worse-capitalized banks increased their loan supply significantly more during the pandemic. Elnahass et al (2021) show that COVID-19 significantly affects financial performance over various financial performance and stability measures.…”

Section: Literature Reviewmentioning

confidence: 96%

Coronavirus pandemic impact on bank performance

Xiazi

Shabir

2022

Front. Psychol.

View full text Add to dashboard Cite

This study examines the effects of the coronavirus (COVID-19) epidemic on the performance of the banking sector. Our sample consists of 1,575 banks in 85 countries from 2020Q1 to 2021Q4. The findings demonstrate that the COVID-19 outbreak has significantly decreased bank performance. Moreover, the adverse impact of COVID-19 on the bank’s performance depends on the bank’s and country-specific aspects. The adverse effect of the COVID-19 outbreak on bank performance is higher in smaller, undercapitalized, and less diversified banks. At the same time, a better institutional environment and financial development have significantly increased the strength and resilience of banks. The results are quite robust to using the alternative bank performance measures and estimation techniques. These findings provide practical implications for regulators and policymakers in the face of unprecedented uncertainty caused by COVID-19 epidemics.

show abstract

Section: Literature Reviewmentioning

confidence: 96%