COMPARATIVE ANALYSIS OF STRATEGIC RISK INDICATORS OF BANKING SECTORS OF SERBIA AND BULGARIA IN THE YEAR BEFORЕ AND THE YEAR DURING COVID-19 PANDEMIC
COMPARATIVE ANALYSIS OF STRATEGIC RISK INDICATORS OF BANKING SECTORS OF SERBIA AND BULGARIA IN THE YEAR BEFORЕ AND THE YEAR DURING COVID-19 PANDEMIC

Summary/Abstract: In this paper, the authors provide an overview of selected strategic risk indicators for a pool of banks from Serbia and Bulgaria in the period before the pandemic in 2019 compared to the year of the pandemic, 2020. The paper deals with the possible impact of the Covid-19 pandemic on the banking sectors of the Republic of Serbia and the Republic of Bulgaria. Special attention is devoted to hypotheses that should explain and define the relationship between the impact of the Covid-19 virus pandemic on individual banks in these two countries, as well as the impact of the size of the given bank on resilience. One of the hypotheses sets the selected ROE indicator as a reference that indicates the bank’s vulnerability in relation to its belonging to a group (on average larger or smaller) in the overall banking sector of the mentioned countries. In order to determine the possible impact of the pandemic and gain insight into the banking sector, the authors collected data on the following: total assets, total capital, total operating income, profit, as well as data on leverage and ROE ratios. The authors, with the help of hypotheses, provide conclusions that could serve to identify the expected resilience (of smaller and larger banks) for some future global impacts that could occur. In addition to the aforementioned, the scientific contribution also provides an insight into whether a world crisis such as a pandemic makes a difference in the banking sector in the countries where one is a member of the EU and the other one is outside the EU.

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