The Impact of COVID-19 Pandemic on Bank Lending Around the World

53 Pages Posted: 18 Oct 2020 Last revised: 5 Jun 2021

See all articles by Gonul Colak

Gonul Colak

University of Sussex ; Hanken School of Economics

Özde Öztekin

Florida International University (FIU)

Date Written: October 15, 2020


We evaluate the influence of the pandemic on global bank lending and identify bank and country characteristics that amplify or weaken the effect of the disease outbreak on bank credit. Using a difference-in-difference methodology and banks from 125 countries, we find that bank lending is weaker in countries more affected by the health crisis. This effect depends on bank financial condition, market structure, regulation and supervision of banking systems, financial intermediary and debt market development, strength of the institutional environment, ease of access of corporate firms to debt capital, and the response of the public health sector to the crisis.

Keywords: Bank loans; credit supply; COVID-19; difference-in-difference; entropy balancing

JEL Classification: G15; G21; G28; G35; F33

Suggested Citation

Colak, Gonul and Öztekin, Özde, The Impact of COVID-19 Pandemic on Bank Lending Around the World (October 15, 2020). Journal of Banking and Finance, Forthcoming, Available at SSRN: or

Gonul Colak

University of Sussex ( email )

Jubilee Building
Brighton, BN1 9SN
United Kingdom

Hanken School of Economics ( email )

P.O. Box 479
Arkadiankatu 22
FI-00100 Helsinki, 00100

Özde Öztekin (Contact Author)

Florida International University (FIU) ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics