Covid’s Impact on Banks


In this 21st century, in front of the whole world it was a very unlikely occurrence of a new pandemic named as Covid-19. First China and after other countries advanced its black claw on Bangladesh. Bangladesh’s government was aware of the pandemics predicament and took steps to protect the population, as well as the economy and numerous industrial sectors. Though the government of Bangladesh did its hardest to provide all forms of assistance to the countrys economy, the government was unable to successfully control the pandemic due to the countrys large population and peoples irresponsibility. Due to the significant impact of Covid-19 during this epidemic, various economic and financial sectors were severely harmed, particularly the garment industry sector. Covid-19 also has an impact on financial institutions such as banks and other financial institutions. Small businesses, start-ups, and other commercial concerns were also severely harmed. The impact of the epidemic on these industries has had a huge impact on all sectors. This research aims to give a comprehensive and useful overview of the observed and potential consequences in the near future. The study relied on secondary data. Information was gathered from numerous media sources, articles, newspapers, policy experts, and other publications in order to better comprehend it. The goal of this research is to describe Bangladesh’s pandemic challenges and government response to the worldwide issue.



According to Bangladesh Bank (BB) statistics , 27,237 bankers of commercial banks affected by CoronaVirus and 143 bankers died from COVID-19 upto June , 2021 .

COVID-19 has generated significant instability and high volatility in global capital markets. While the full impact is yet to be determined, it’s expected that the adverse impacts are likely to continue from the virus’ knock-on effects. As part of our Global banking M&A outlook H2 2020 report, we explore the areas of the overall banking sector most likely to be impacted, including valuation and profitability.

The areas that are likely to be most impacted by COVID-19 are:
Profitability and credit management/cost of risk
The low interest rate scenario, along with the significant impact of the COVID-19, is reducing the core banking profitability in mature markets. Financial institutions are thus shifting towards commission-based income from the likes of payments and tech businesses.

One of the immediate effects of the health emergency on the real global economy is the increased credit risk of corporate and retail clients of the banks. In order to continue financing the real economy and support its recovery, banks are called to distinguish between purely temporary phenomena, destined to be reabsorbed in a short time, and longer lasting impacts which would require actions of management and reclassification.


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