QUALITATIVE DEVELOPMENT OF BANKING SERVICES DURING THE PANDEMIC COVID-19

Abstract

In the first half of 2020, the entire world community realized that it was on the verge of a pandemic. The virus was identified as a novel coronavirus and later named coronavirus infection-19 or COVID-19 (Qiu et al., 2020). At a time when COVID-19 arose in the city of Wuhan in the Chinese province of Hubei, the spread of COVID-19 throughout the planet, as expected, led to a significant slowdown in economic activity. According to the first forecast of the International Monetary Fund, the world economy was to contract by about 3 percent in 2020. The decline was expected to be much greater than during the global financial crisis of 2008-2009.

            According to June 2020, the International Monetary Fund revised its forecast to a 4.9 percent reduction in 2020. The report gives the following reasons for the updated projection: first, greater perseverance in social distancing; second, lower activity during lockdown; third, a sharper decline in the productivity of the enterprise, which is forced to introduce quarantine measures; and fourth, greater uncertainty and worse expectations will affect investment market sentiment. The economic impact can be extensive and unpredictable, with varying effects on the labour market, supply chains, financial markets and the global economy as a whole. The negative economic consequences may vary depending on the severity of the social distancing measures (e.g. the blocking of movements and the related policy of administrative measures), the duration of their implementation and the degree of compliance