Resilience of commercial banks of Bangladesh to the shocks caused by COVID-19 pandemic: an application of MCDM-based approaches

Purpose The purpose of this study is to analyze and forecast the financial sustainability resilience commercial banks Bangladesh in response negative effects COVID-19 pandemic. Design/methodology/approach Eighteen publicly listed Dhaka Stock Exchange (DSE) have been taken as a sample for study. To measure riskiness banks' credit portfolio, nine industries DSE considered determine probable loss revenue arising from pandemic shock. Moreover, two commonly used multiple-criteria-decision-making (MCDM) tools namely TOPSIS method HELLWIG analyzing data. Findings Based on performance scores under method, are categorized into three groups (six each) top resilient, moderate resilient low resilient. It found that EBL DBBL most banks, ONEBANK worst bank managing Research limitations/implications This concludes with capital adequacy, liquidity ratio, higher NPLs more vulnerable shocks caused by management should emphasize maintaining base reducing default loans. Originality/value Resilience Bangladeshi banking sector any adverse economic event has examined only using stress testing approach. empirical evidence where both MCDM methods make result conclusive.