Systemic Risk: The Impact of COVID-19

Posted: 2 Jun 2020 Last revised: 22 Sep 2021

See all articles by Muhammad Suhail Rizwan

Muhammad Suhail Rizwan

National University of Sciences and Technology (NUST)

Ghufran Ahmad

National University of Sciences and Technology (NUST)

Dawood Ashraf

Islamic Development Bank Institute

Date Written: July 4, 2020

Abstract

Banking sectors across the world are facing unprecedented challenges due to the COVID-19 pandemic and are under immense pressure. This study examines the impact of COVID-19 on the systemic risk in eight of the most affected countries. Results indicate a significant increase in systemic risk during the pandemic. All the sample countries exhibit stagnancy (at an elevated level) in systemic risk during April 2020 except for China which has shown some recovery. By using the spillover measures, we also identify the systemically important institutions. The findings of this study have valuable insights for the regulators

Keywords: Systemic Risk, COVID-19, CATFIN, Financial Institutions

JEL Classification: G01, G21, G32, G18

Suggested Citation

Rizwan, Muhammad Suhail and Ahmad, Ghufran and Ashraf, Dawood, Systemic Risk: The Impact of COVID-19 (July 4, 2020). Rizwan, M. S., Ahmad, G., & Ashraf, D. (2020). Systemic Risk: The Impact of COVID-19. Finance Research Letters, DOI: 10.1016/j.frl.2020.101682 , Available at SSRN: https://ssrn.com/abstract=3615161 or http://dx.doi.org/10.2139/ssrn.3615161

Muhammad Suhail Rizwan (Contact Author)

National University of Sciences and Technology (NUST) ( email )

Pakistan

Ghufran Ahmad

National University of Sciences and Technology (NUST) ( email )

Pakistan

Dawood Ashraf

Islamic Development Bank Institute ( email )

P.O. Box. 9201
Jeddah, 21413
Saudi Arabia

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