THE IMPACT OF THE COVID-19 PANDEMIC ON THE BANKING SYSTEM AND CREDIT RISK
This paper reviews the impact of the coronavirus on the banking sector and, more specifically, the credit risk and identifies ways in which future research can contribute to limiting this risk. When the coronavirus pandemic struck, its human and economic repercussions were felt in almost every corner of the world. Indeed, Covid-19 has plunged many individuals or companies into risk situations of unpaid debts that credit organizations must manage. It has become evident that financial institutions need to rethink how they assess credit risk and country risk. However, the perception and methods of calculating and measuring risk could be more reliable and complex. This is the first review to analyze the covid-19 effect on the banking sector (2020- 2022). Through this research work, we wanted to see more closely the impact of this pandemic on the banking sector and, more specifically, the credit risk. Moreover, what are the new repercussions and scenarios that were born to no longer be in the same situation in the future? The pandemic will therefore accelerate advances in digitalization, teleworking, and significantly advances in data and technology in the credit risk model.
Banking sector, credit risk, COVID-19