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Impact of Covid-19 on Banking Performance in the case of Bulgarian Bank System

Author

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  • Aleksandrina Pancheva

    (University of Economics - Varna, Varna, Bulgaria)

Abstract

After the World Financial and Economic Crisis, the frequency of bank performance analysis has increased. The reason for this is the negative effects of the crisis, which led to a total rethinking of business models and the behavior of bankers. And while analysts were looking for changes in the behavior of the determinants of bank performance indicators, the world faced a new factor - Covid-19, which gave a new impetus to the studies. Subject of research in this publication are the banks in Bulgaria, and the purpose of the analysis is to outline the determinants of bank profitability and efficiency in the conditions of Covid-19. The thesis advocated in the research is that the banks in Bulgaria are affected by Covid-19 in regards to their key performance indicators, but indirectly and do not fall within the outlined borderlines of a "collapse" of the system, in the context of the countries outside the euro area.

Suggested Citation

  • Aleksandrina Pancheva, 2022. "Impact of Covid-19 on Banking Performance in the case of Bulgarian Bank System," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 11(1), pages 37-46, April.
    • Handle: RePEc:vra:journl:v:11:y:2022:i:1:p:37-46
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    File URL: http://su-varna.org/journal/IJUSV-ESS/2022.11.1/37-46.pdf
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    References listed on IDEAS

    as
    1. Ewa Miklaszewska & Krzysztof Kil & Marcin Idzik, 2021. "How the COVID-19 Pandemic Affects Bank Risks and Returns: Evidence from EU Members in Central, Eastern, and Northern Europe," Risks, MDPI, vol. 9(10), pages 1-22, October.
    2. Mr. Shekhar Aiyar & Mai Dao & Andreas Jobst & Ms. Aiko Mineshima & Ms. Srobona Mitra & Mahmood Pradhan, 2021. "COVID-19: How Will European Banks Fare?," IMF Departmental Papers / Policy Papers 2021/008, International Monetary Fund.
    3. Li, Xingjian & Feng, Hongrui & Zhao, Sebastian & Carter, David A., 2021. "The effect of revenue diversification on bank profitability and risk during the COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 43(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    bank performance; bank profitability; bank operating efficiency; ROE; ROA; Cost/Income; Covid-19;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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