THE IMPACT OF COVID-19 ON THE LARGEST TRANSNATIONAL BANKS’ ACTIVITIES IN ASIA, EUROPE AND AMERICA

Abstract

The concept and key features of functioning of multinational banks in the conditions of integration and globalization strength are considered. A quantitative analysis of the performance of TNBs in Asia, Europe and America is performed. A comparative analysis of the impact of coronavirus on the volume of loans, deposits, net income of multinational banks in China, Japan, USA, France, Germany and the United Kingdom is done. The relationship between the number of patients and banks’ profitability based on the constructed multiple regression model was studied. Statistical indicators of significance, reliability and adequacy of the model are determined. The share of funds allocated for the fight against coronavirus and its impact on the economies of the world is calculated. The dependence between the funds allocated for the fight and prevention of COVID-19 and multinational banks’ profits is substantiated. Operating in the international financial market, multinational banks face many problems, including a large quantity of competitors, the desire of host countries to protect their national interests through the usage of certain protectionist tools and measures, the importance of competitive advantage to stand out in the market, the need to diversify products and the fluctuations of exchange rates. The stability of the country’s economic and political environment plays the crucial role in the choice of the market which MNB wants to enter. Multinational banks are associated with financial globalization that means the integration of financial markets of all countries of the world into one. The largest multinational banks are located in China, Japan, the United States and France. During the coronavirus pandemic, Chinese and Japanese multinational banks remained the strongest and the most stable banking groups. Despite the fact that COVID-19 first appeared in Asia, the government didn’t implement too drastic measures that could harm the economy and learned to deal with the virus. The worst position has multinational banks in European countries, especially where total lockdown was introduced twice. Such measures led to a weakening of currencies due to lower expectations of economic growth, that influences exchange rate fluctuations and negatively affects banks’ resources. Generally, according to the forecast of profitability for 2021, European multinational banks will recover more slowly after the crisis than Asian and American multinational banks. Keywords: multinational banks, COVID-19, financial results of banking performance, number of patients, coronavirus control and prevention funds, multiple regression model.