DEVELOPMENT OF THE BANKING SECTOR AND ITS IMPACT ON CURRENT SOCIAL DEVELOPMENT TRENDS IN THE CONTEXT OF THE ECONOMIC CONTRACTION AND PANDEMIC

Abstract

Currently, most of the economies of the countries have overcome serial defaults on public debt and high inflation, but banking crises occur on an ongoing basis, as confirmed by data from 1800. Amid the downward wave of the N.D. Kondratyev cycle and in the face of a pandemic, a recession in many countries can go into a deep and long-term economic crisis. The article focuses on one of the two most significant crises for today, on the banking crisis. The crisis of the banking system is significant in that in the future it is very difficult for the economy to resume normal economic activity. The purpose of the article is to describe the current state of the banking sector in a pandemic and the likelihood of a banking crisis; To identify the role of banks in contemporary social development trends; Identify measures taken to prevent the deterioration of banks in the short and long term. To achieve this goal, the following objectives are being fulfilled: the current state of the banking sector of developed and developing countries has been studied; current trends of social development under the influence of pandemic and development of banks; the financial condition of banks compared to 2008. The authors used methods of analysis, modelling, monitoring of basic economic indicators based on retrospective data. As a result of the study, the following are identified: specific features in the activities and development of banks in modern conditions, short-term and long-term measures for the sustainable operation of banks in a pandemic and the prevention of a banking crisis. It was concluded that financial and economic crises are inevitable. There are no universal indicators of crisis recognition and prediction, such as the emergence of a pandemic. And crisis theory today is becoming the platform on which a new paradigm of economic science can be created. It is economic crises that are becoming incentives for breakthrough changes in economic science.