Abstract: This paper investigates the short-term impact of the coronavirus (COVID-19) outbreak on the banking system tipping points in all affected countries across the globe. The consequences of infectious disease are considerable and have directly affected the banking system worldwide. Using the Lotka-Volterra complex system theory approach, this study develops the complex dynamical model for investigating the role of the pandemic towards the banking system tipping points. Our results indicate that the banking system in major affected economic zones fell quickly during the critical virus outbreak. The Eurozone experienced more negative abnormal returns during the crisis than other economic zones. Further results confirmed that the promotion of the banking system z-score improves the tipping point locations to large values and thus, enhances an exponential growth of the banking system. Moreover, the study of banking systems can be applied as an optimal control approach to reduce economic risks, increase banking sector performances, and avoid financial collapse.
Keywords: banking system resilience; tipping point; bank-cost; Lotka-Volterra theory; economic zone; system bifurcation.
Title: The Impact of COVID-19 Pandemic towards Banking System Tipping Points
Author: Joseph David Madasi, Christopher Manjeka, Akwer Eva
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 10, Issue 3, July 2022 - September 2022
Page No: 327-340
Research Publish Journals
Website: www.researchpublish.com
Published Date: 23-August-2022
