The Banking System during Crisis Times, A Global Perspective

Abstract

The study aims to highlight the impact of multiple crises on developments and changes in banking systems at the global level. As banking represents the most important channel for capital allocation, globally, the topic impacts policies as well as economies. The paper presents the linkages and developments between the dependent variable credit interest rate and macroeconomic indicators used as dependent variables: unemployment, inflation, capital adequacy ratio and bank assets to GDP. The data were collected and analyzed for a relevant period, between 2013 and 2021, representing the post-financial global crisis and pandemic crisis. The sample includes 30 countries with a combined GDP of around 60% of the global GDP. According to the research results, a balanced relationship between competitiveness, profitability, and sustainability within the financial and banking sectors can be achieved through cooperation between all 30 analyzed countries. Other relevant concerns to develop viable economic policy options should focus primarily on keeping inflation rates at a stable level by the central banks, together with the efficient allocation of funds, diversification of sources of energy, and reducing dependencies.