How Has COVID-19 Affected Banking System Vulnerability?

Blickle, Kristian S.; Crosignani, Matteo; Duarte, Fernando M.; Eisenbach, Thomas M.; Fringuellotti, Fulvia; Kovner, Anna

Discussion Paper

How Has COVID-19 Affected Banking System Vulnerability?

Abstract: The COVID-19 pandemic has led to significant changes in banks’ balance sheets. To understand how these changes have affected the stability of the U.S. banking system, we provide an update of four analytical models that aim to capture different aspects of banking system vulnerability.

Keywords: COVID-19; financial stability; fire sales; bank runs;

JEL Classification: G2;