Effect of COVID-19 outbreak towards banking and finance industry

Abstract

The coronavirus disease COVID-19 spreading throughout the worldwide with the total confirmed affected cases is 96,658,420, including 2,092,062 deaths, reported to WHO on 23rd January 2021. These numbers proved that COVID-19 become most affected virus in year of 2021. This virus affected all market segments of economic activities including banking and finance industry. The objective of this study is to evaluate the economic impact of COVID-19 outbreak towards banking and finance industry. This study selected two market indices (S&P500 and KLCI) for analyzing economic condition in equity market. Then, this study selected three banking institution for validating the finding for economic condition during outbreak of COVID-19. Result shows outbreak of COVID-19 give negative impact towards economic condition for banking and finance industry. The findings of this study will help practitioners and government body in developing finance policy to combating the current economic situation. Further study can be extending to analyzing the effectiveness monetary policy towards recovery of finance situation after COVID-19 outbreak. Furthermore, the finding of this study also will help banking institutions to develop more customer-friendly interest rate in overcoming this economic situation of COVID-19.