Soares, MargaridaKlimpel, Benjamin Johannes2022-06-202025-01-042021-01-112021-01-04http://hdl.handle.net/10362/140317The paper scrutinizes the impact of the Covid-19 pandemic and the induced containment measures on the banking system in the euro-zone. As the first line of defense mechanism against credit losses, profits are essential for a vital banking sector. As a measure of profitability, the return-on-equity (RoE) has been considered. The paper investigates potential drivers for the RoE development and evaluates the effect of Covid-19 on the RoE using supervisory data published by the European Central Bank on a quarterly basis. In this analysis, a dummy representing the outbreak of Covid-19 in the European Union in 2020-Q1 has been introduced. Using this approach, a statistically significant drop in the RoE of the banking sector of approximately6 percentage-points could be perceived.engBanking regulationsCovid-19Key performance indicatorsBanking capital ratiosmaster thesis202932028