The Impact of the Crisis Triggered by the COVID-19 Pandemic and the Actions of Regulators on the Consumer Finance Market in Poland and Other European Union Countries

Abstract

The economic crisis triggered by the COVID-19 outbreak has severely affected the global economy. The ultimate scale of the recession is yet to be determined, but it is likely to be the most dramatic slump since World War II. The impact of the crisis on the financial sector, especially consumer finance, could almost instantly be observed. The article shows how determination and consistency in regulatory actions counteracts the effects of the pandemic crisis for the banking sector and consumer finance. The conducted research has shown the existence of a number of social phenomena typical of this type of global crisis, such as shopping panic, reduced creditworthiness of households related to loss of income, unemployment and increased crime. At the same time, the actions of financial market regulators turned out to be very effective (no negative structural phenomena occurred in the financial market). The accuracy of the selection of instruments and the speed of action limited the social and financial effects of the pandemic, including a loan repayment memorandum, limiting the cost of consumer loans and supporting the banking sector, which will limit the scale of excessive household debt and consumer bankruptcies, and companies were also supported. The research was conducted on the basis of available literature on the subject, market analyses and a review of regulations implemented at the central level and in individual EU member states.

Corporate Fight against the COVID-19 Risks Based on Technologies of Industry 4.0 as a New Direction of Social Responsibility

“…This problem urges the search for alternative methods of manifesting corporate social responsibility, which is ensured in the second case-a company has to demonstrate flexibility and innovative activity to support the previous production capacities load with the observation of the imposed limitations for the effective COVID-19 risks management (Gębski 2021;Ignatowski et al 2021). This works for almost all companies and leads to minimal risks, providing wide opportunities for the return of investments in business modernization.…”

Nonlinearity in the relationship between COVID-19 cases and carbon damages: controlling financial development, green energy, and R&D expenditures for shared prosperity

“…Numerous earlier scholars widely discussed the viability of nonlinearity in macroeconomic modeling to confirm regime-based analysis in the estimation procedure. For instance, Goldfeld and Quandt (1976), Maddala (1986), andFrühwirth-Schnatter (2006) are a few of them that describe the basic features of the switching regressionbased regime. The recent strikes of literature used the stated regression approach in different socio-economic and environmental settings, for instance Anser et al (2021b), Liu et al (2021), andFitawek andHendriks (2021).…”

Poland–Turkey Comparison of Mobile Payments Quality in Pandemic Time

“…Interesting literature studies have dealt with the issue concerning the establishment and consistency of regulatory actions that may counteract the effects of the pandemicrelated crises for the banking sector and consumer finance in Poland and other European Union countries. The conducted research has shown the existence of several social phenomena typical of this kind of global crisis, such as panic buying or reduced creditworthiness of households related to loss of income, unemployment and increased crime rates (Gębski 2021).…”