Влияние на Covid-19 върху устойчивостта на банковата мрежа в България
Impact of Covid-19 on the Sustainability of the Banking Network in Bulgaria

Summary/Abstract: The banking system in Bulgaria is facing its most serious challenge in the last ten years – the global Covid-19 pandemic. Due to the inseparable link between the real and financial sectors, the downturns in the former are transferred to threats to credit institutions. This study is dedicated to analyzing the negative effects of macroeconomic shock (pandemic) on the entire banking sector. It is carried out with the help of matrix tools, presenting the banking system as a network consisting of nodes (institutions) and connections (interbank exposures). By applying stress tests to bank failures, the relation "network structure-banking sustainability" is estimated in crisis economic conditions.

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