The Impact of COVID-19 on Bank Equity and Performance: The Case of Central Eastern South European Countries

The purpose of this article is to examine the impact shock increase, in value nonperforming loans, on equity level and profitability 141 banks 18 countries Central Eastern South Europe (CESE). This study important for assessing financial stability region face continuing negative effects COVID-19 pandemic. Based annual data, as end 2020, from S&P Global database, stress tests were carried out check what NPL growth, over next year, will lead breach regulatory capital requirements domestic sectors individual groups banks. results indicate that CESE well capitalized had ability maintain with a 12% increase loans. resilience banking varies, it higher non-EU countries. Smaller non-public show greater preserve appropriate equity, although there risk they may postpone time provisioning credit additionally lending lower ratio. Larger are more profitable times crisis. research sector during crisis can be used by supervision region’s market analysts.