The Impact of Covid-19 On Activities of Banks
The Impact of Covid-19 On Activities of Banks

Summary/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.

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