Did the pandemic effect bank profits differently across Asia and EU?

What is it about?

There are certain typical factors that impact bank profitability. Does the pandemic strengthen or weaken the factors that impact profitability? This study investigates if the crisis moderated the relationships. It finds that covid-19 impacted bank profitability differently across the developed and developing countries. Covid-19 caused profitability to fall in the homogeneous European banks, whereas profitability increased for South Asian banks during the Covid crisis.redit quality and bank efficiency became less important in determining bank profitability during the Covid period. In contrast, bank size and maintaining liquidity became more important determinants. Additionally, the magnitude

Featured Image

Photo by Tai's Captures on Unsplash

Photo by Tai's Captures on Unsplash

Why is it important?

Its important because it suggests that some factors become more important for banks in maintaining profitability during recessions.