Sustainability of the world banking system in the context of the coronacrisis COVID-19

The new form of crisis has had a significant impact on all spheres of public life of mankind. National economies, like the world economy, faced a forced decline in activity in all sectors and areas of activity. The crisis also affected the banking sector, which, especially during periods of instability, is significantly increasing in the development of the national and world economies. Activity in the form of increasing credit debt of international banks remained stable during the intensifying Covid-19 crisis, although production volumes fell more significantly than during the financial crisis of 2008. Both cross-border and local credit requirements have been sustainable in both advanced and emerging economies. Studying lending to the real sector of the economy, a study was conducted characterizing the relationship and interaction between the borrower and the lender with the growing credit requirements for the private non-financial sector during the pandemic. It was revealed that countries with higher economic activity and lower financial vulnerability took out more loans. In addition, the authors concluded that more capitalized banking systems also issued more loans. It was concluded that economic stress forced borrowers with a developed economy to use pre-existing credit lines from foreign banks.