Effect of Covid-19 on the Financial Performance of Commercial Bank in Bangladesh

Abstract

The banking industry plays a very important role in the Bangladeshi economy, and measuring financial performance is one of the main factors that banks should consider. The efficiency of the country’s banking sector is seen as a macroeconomic achievement. This is the best reflection of economic development. The rating of monetary indicators of the banking sector is a vivid and effective indicator to test the sustainability of a country’s economic activities. In recent years, Bangladesh’s state-owned commercial banks have fluctuated due to their performance and profitability. Bangladesh’s banking industry will be one of the economic sectors most affected by the overall slowdown in macroeconomic growth. Bangladesh’s banking industry, as well as its involvement in the most severely affected economic sectors, such as foreign trade, RMG, and capital markets, were in trouble even before the pandemic because the ceiling for all loans (excluding credit) was set at 9% Card), printing liquidity and permanent bad debt deterioration; however, due to the COVID-19 pandemic and the isolation caused by it, the banking industry will face a serious crisis in several ways, because the quality of the bank’s assets may decline, and its Interest income and expenses will also be affected. On Sunday, April 5, 36 private banks in Bangladesh decided to donate 16.13 million U.S. dollars (137 billion taka) to the Prime Minister’s Welfare and Aid Fund to help the government respond to the coronavirus pandemic. They are 590,000 U.S. dollars (50 million taka) and 150,000 U.S. dollars (1.25 million taka).In this report I mainly highlights five big Commercial Bank in Bangladesh. These are- City Bank, Brac Bank, United Commercial Bank, Eastern Bank and Mutual Trust Bank. I mainly discuss this banks condition after and Current Covid-19 Financial Performance.