Question

banking effects by COVID 19 pandemic​

Answer 1

Answer:

The Coronavirus Disease 2019 (COVID-19) pandemic has caused widespread economic

disruption. Millions of businesses were forced to shut down and unemployment soared. The

weakened economic conditions are likely to have implications for the financial system, including

for banks and the banking industry. Many bank assets are loans to households and businesses,

and banks rely on the inflow of repayments on those loans to make profits and meet their

obligations to depositors and creditors. If repayments suddenly decline, banks can become

distressed and potentially fail. Bank failures can be especially disruptive to the economy because

they remove an important credit source for communities, and the financial system can become

unstable if failures are widespread

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