Banking resilience and government response during the COVID-19 pandemic: Evidence from Nigeria
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Date
2023-06-14
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Business Perspectives
Abstract
In a global pandemic, there is a need for banks to improve service delivery through
financial technologies. Since the fight against COVID-19 is the community responsibility, the role of banks in channeling cash to all stakeholders is essential for the contemporary human race. This study investigated the impact of the government response
to COVID-19 on the resilience of banks. A multivariate Structural Equation Model
(SEM) was used to specify the links between the exogenous factors (government’s social and financial responses) and the endogenous variables (resilience of bank customers, employees and investors). A research survey approach was used where 543 respondents were sampled. A self-constructed online questionnaire was used to harvest
responses from customers, employees and investors of the selected banks. The result
of the analysis showed a significant relationship between government’s social response
and the resilience of bank customers. However, such a relationship does not hold between government’s social responses and other resilience indicators (employees and
investors). Furthermore, the result revealed that government’s financial responses do
not affect the resilience of banks. The study concluded that the government’s social
response during the COVID-19 pandemic influenced bank customers’ resilience in
Nigeria. It was recommended that banks, as part of the policy, develop tools to complement government actions during the pandemic, thereby ameliorating its impact on
their customers.
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Afolabi, T. S., Ayodele, T. D., Akinyede, O. M., Adeyanju, O. D. & Williams, H. T. (2023). Banking resilience and government response during the COVID-19 pandemic: Evidence from Nigeria. Banks and Bank Systems, 18(2), 214-227