IMPACT OF COVID 19 ON FINANCIAL SECTOR

The COVID-19 epidemic has demonstrated that the financial sector is both sensitive and adaptable. Investor behaviour shifted, the economy slowed, and market volatility increased as a result of the global health crisis’s interruption of economic activities. To stabilise financial markets and promote economic recovery, financial institutions and central banks around the world took extraordinary steps, including liquidity support, fiscal stimulus packages, and monetary easing. Digital banking became more popular throughout the outbreak, demonstrating the importance of having new technologies to keep things moving smoothly and efficiently. Furthermore, the crisis exposed flaws and risks in financial institutions as a whole, prompting a rethink of regulatory frameworks and risk management practices. The economic crisis’s increased monitoring of credit risk and asset quality had far-reaching implications for lending practices and financial stability. Adapting to a rapidly changing environment, embracing digital transformation, and addressing the long-term effects on global economic systems are all problems that the financial sector must face as the world deals with the aftermath of the epidemic. This abstract examines the multifaceted impact of COVID-19 on the banking sector, emphasising the significance of resilience and adaptability in the face of future shocks.