Accounting & Finance Research Community Seminar

Title: The nexus between the Covid- 19 health crisis and bank credit risk
Date: 26 October 2022
Time: 13:00-14:00
Location: NUBS 2.14

Guest Speaker: Mengya Wu, PGR Student, Newcastle University Business School

If you would like to attend, please register using the following link: https://forms.office.com/r/r99cuXn2wq.

Abstract
Credit risk has been a key area of focus for academics, policy-makers, market participants, and practitioners following the outbreak of the Covid-19 pandemic. Credit risk is admittedly the most significant type of risk faced by banks as it is inherent to their key activities. Poor credit risk management and failure to identify deteriorating credit quality in a timely and consistent manner can lead to bank losses and undermine confidence in the banking industry. The Covid-19 health crisis has made the measurement and the assessment of credit risk more challenging due to the unprecedented nature of the crisis. In this paper, we shed the light on the impact of the Covid-19 crisis on credit risk based on a global sample of banks. Our data extend from the beginning of 2017 to 2022, allowing us to conduct a comparative analysis of bank credit risk between the pre-crisis and the crisis periods. We consider both accounting and market measures in the assessment of credit risk. In a similar vein, a number of metrics are utilised to capture the Covid-19 crisis and the relevant waves along with a group of variables that describe the pharmaceutical and the non-pharmaceutical interventions undertaken by countries around the globe.