| Abstract [eng] |
72 pages, 15 charts, 11 figures, 85 references. The main purpose of this master thesis is to determine households and companies’ financial stability during Covid 19. The Master thesis consists of four main parts: the analysis of literature, methodical approaches analysis, research analysis with conclusions and recommendations. Literature analysis reviews overall financial stability question, how it is understood in peer research and what was covid 19 for financial stability, how pandemic can affect economies on macro and micro levels. Ways by which households and companies tackled these difficulties. After literature analysis four types of methods were selected to tackle financial stability question. Data analysis from Lietuvos bankas and IMF, focus group interview analysis of high net worth bank clients, financial reports analysis of three major Lithuanian banks. Correlations were also used with covid 19 cases which allow to find direct connections to pandemic. Main assumption from methodology is formed by author with figure 1 which assumes causes and effects of covid 19. The research followed with such findings covid 19 had tangible effects on almost all economies which experienced spikes in covid 19 cases. Economic sectors such as retail sales companies experienced strongest volatility in financial difficulties as there were forced to close due to fact, they are not essential. Other notable facts were identified such as financial stimulus to economies was effective at stopping non-performing loans spiral from start to end of covid non-performing loans amount only decreased and it was most notable in Lithuania with 83,33% decrease since 2018. Focus group interview indicates that high net worth households heavily benefited from financial markets turmoil invested in stocks and real-estate and holder their assets during market downturns overcoming volatility. Their financial stability mainly improved even further. The conclusions and recommendations were identified by author with these findings, as it was noted in literature every aspect of economies was affected by pandemic but not all sectors were suffering from it, households and companies which identify these opportunities could benefit from this strong performance but also to create plan in such unprecedented situations. |
