ABSTRACT
COVID-19 pandemic put severe impacts on the banking sector of the world. The pandemic has warned the investors, policy makers, and public that such pandemics can cause large economic damages to the world economies. The impacts of pandemic on financial institutions like foreign remittance, foreign trades (imports and exports), local trades, foods and agriculture, government revenue, and employment create a big pressure on the world reforms agenda. The pandemic disturbed the working style of the banking system. It caused a decrease in the capacity and performance of debtors. Ratio of credit risk has been increased due to the pandemic. To stabilize financial integrity and to minimize the impacts of the pandemic, financial institutions have to take some legal and performance-based steps. The government and regulatory authorities have made it possible to counter the pandemic by applying restrictive policies. It is the need of the hour to bring banking sector restructuring to minimize the impacts of natural calamities and pandemics. Global banking sector challenges like digitization of banks, low interest rates, depression of bank valuation, and strength of banks must be reevaluated to face future 262pandemics. The role of government to sustain banking system is imperatives and such government financial packages are helpful for smooth running of the homes of financially crunched families. Government responses in three main indexes like economic support index, health index, and stringency index are playing its pivotal role to face the pandemic.
