Structural change and fading of the Covid-19 impact in the banking sector in 2021
Trends in the banking sector of 2021 were still closely linked to the shock for the economy caused by Covid-19. Following a substantial drop in the previous year, the banking sector experienced a sharp improvement in profitability, and increases in deposits continued due to limited consumption opportunities and precaution. On the other hand, asset quality indicators showed that overall impacts had been less than initially forecast. At the same time, uncertainty remained high and, along with other factors, stifled lending to long-time weakened domestic businesses.