Author(s)

Li Yao ¹

Affiliation(s)

¹ Business School, Southwest Jiaotong University Hope College, Chengdu, Sichuan, China

Corresponding Author

Li Yao

ABSTRACT

In 2020, COVID-19 significantly impacted China's economy, causing a contraction in import-export trade and slowing national trade growth. Commercial banks were also affected, with reduced economic activities and loan enterprises facing crisis. The pandemic challenged banks' income and asset quality, while policies encouraged loan support and interest rate reductions. Overdue loan repayments posed risks. This study explores COVID-19's impact on Chinese commercial banks' credit business, analyzing macroeconomic ties, credit behavior, and recent trends. Using 42 listed banks' data from 2008-2021, it finds that the pandemic promoted credit scale but altered credit structure, leading to adverse selection and increased risk for large banks. Finally, in response to the problems existing in Chinese commercial banks, this article proposes risk prevention measures and looks forward to their normal operational prospects.

KEYWORDS

COVID-19, commercial bank, credit business

CITE THIS PAPER

Li Yao, The Effects of the COVID-19 Pandemic on the Lending Operations of Chinese Commercial Banks. Accounting and Corporate Management (2024) Vol. 6: 197-206. DOI: http://dx.doi.org/10.23977/acccm.2024.060324.

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