Banking Research in the Time of COVID-19
Despite the devastating worldwide human and economic tolls of the COVID-19 crisis, it has created some positive economic and financial surprises and opportunities for research. This paper highlights two such favorable surprises —the shortest U.S. r...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/183741632425100764/Banking-Research-in-the-Time-of-COVID-19 http://hdl.handle.net/10986/36309 |
| Summary: | Despite the devastating worldwide human
and economic tolls of the COVID-19 crisis, it has created
some positive economic and financial surprises and
opportunities for research. This paper highlights two such
favorable surprises —the shortest U.S. recession on record
and the avoidance of any banking crisis—and a number of
research opportunities. The paper ties the “economic
surprise” of the short recession to the speed and size of
U.S. stimulus programs during COVID-19—faster and larger
than for the Global Financial Crisis (GFC). It connects the
“financial surprise” of the resilient banking sector to
prudential policies put in place during and after the GFC
that fortified U.S. banks prior to COVID-19. These twin
“surprises” are also mutually reinforcing—if either the
economy or banking system had failed, so would the other.
The paper also reviews extant COVID-19 banking research and
suggests paths for future research. It recommends that
particular attention be paid to research outside of the
U.S.—where fewer favorable “surprises” may be present—as the
best way to advance knowledge in this area. |
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