Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 31 , 10 November 2023


Open Access | Article

Risk Management in the Banking Sector During the COVID-19 Crisis: Challenges & Responses

Wenzhe Gao * 1 , Yukun Liu 2
1 Nankai University
2 Nankai University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 31, 48-53
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Wenzhe Gao, Yukun Liu. Risk Management in the Banking Sector During the COVID-19 Crisis: Challenges & Responses. AEMPS (2023) Vol. 31: 48-53. DOI: 10.54254/2754-1169/31/20231496.

Abstract

The COVID-19 pandemic has significantly impacted the banking sector worldwide, exposing vulnerabilities and leading to the collapse of major banks, such as Silicon Valley Bank, Signature Bank, First Republic Bank, and Credit Suisse. Concerns about a potential systemic banking crisis have been sparked by the circumstance, which also emphasizes the necessity for risk management techniques to change with the times in order to handle key risks in the banking industry, such as credit, liquidity, market, and systemic risks. This study intends to look into how the COVID-19 epidemic affected risks in the banking industry and how banks responded. According to the findings, the pandemic has increased market, credit, and liquidity risk as well as systemic risk due to the interconnection of financial markets and institutions. To address these risks, banks have adopted various measures, such as increasing capital buffers, adjusting lending policies, and enhancing risk management systems. However, the study suggests that risk management tools need to evolve further, and banks need to develop proactive strategies to identify and mitigate potential risks before they become systemic. Banks can increase their resilience to upcoming crises and help to general financial stability by comprehending how the pandemic will affect various risks and implementing proactive risk management techniques.

Keywords

credit risk, liquidity risk, market risk, systemic risk

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-083-7
ISBN (Online)
978-1-83558-084-4
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/31/20231496
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated