Analysis of the impact generated by COVID-19 in banking institutions and possible economic effects
From the perspective of early warning and the effects generated by the COVID-19 pandemic, this article deals with the impact that the COVID-19 pandemic has on the banking network. The 2019-nCoV coronavirus epidemic began in the Chinese city of Wuhan, which spread across the country and later in a ve...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2020-09-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1471.pdf
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| Summary: | From the perspective of early warning and the effects generated by the COVID-19
pandemic, this article deals with the impact that the COVID-19 pandemic has on the banking
network. The 2019-nCoV coronavirus epidemic began in the Chinese city of Wuhan, which spread
across the country and later in a very short period of time in several states, being seen as a global
contagion effect that causes a large concern. The first part of the case study highlights that the
behavior of agents greatly impacts the decisions they will make and this can cause financial and
economic imbalances. The financial impact of coronavirus goes beyond the worst old scenarios,
building the ideal framework for a possible economic crisis. Economic changes and their effects
have also affected the stock markets. This is also analyzed in the first part of the case study and
through the IT solution NetLogo we simulated the contagious economic effect that can be transmitted
in the economy of a country that is built on the interactions between several economic agents, such
as businesses, banks, institutions and even the government of a country. In the analysis performed
in the second part of the case study, we collected data on the following stock market indices: S &
P500, Dow Jones Industrial Average, FTSE but also indices related to the banking groups that
include both Raiffeisen Bank Romania and Romanian Commercial Bank and we analyzed these data
in the Altreva Adaptive software. |
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| ISSN: | 1841-8678 1844-0029 |