The effects of Covid-19 on the banking system in international trade

The Covid-19 pandemic, which emerged as a social and economic crisis, had positive/negative effects on almost every sector. One of the sectors affected by the epidemic is the banking sector. In this study, the effects of the Covid-19 outbreak on the banking sector are examined in Turkey. For this purpose, within the scope of the study, the effects of the Covid-19 outbreak on the basic financial indicators of the Turkish banking sector at the macro level were analyzed. In the study, descriptive data analysis and ratio analysis methods were used. In the light of the findings of the studies, an increase was observed in the risk profile of banks after the pandemic. Banks, on the other hand, channeled their funds to less risky areas such as government securities or bonds in order to control the increased risk. On the other hand, due to the fact that the real sector has come to a standstill and increasing unemployment, a significant part of the funds held by the banks remained idle. Although the demand for credit has increased, especially private banks have been reluctant to meet this demand due to the increasing individual risk profile, causing economic problems to deepen. As a result, more detailed regulation of capital and money markets will provide both a higher level of protection to financial enterprises and more effective support policies and process managements for the overall country's economy in case of shocks. Keywords: Banks, banking sector, financial situation, Covid-19 pandemic.