Can corona virus or any other epidemic disease can collapse Banking?

[Pffrt]

Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.

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[fiulpro]

Unfortunately when a pandemic strikes and it goes around    and strikes country after country not only banks but at the same time everything is bound to collapse , people are leaving their pets behind and fleeing .. the situation is uncontrollable in many countries.

I do think it can for sure cause a surge of prices inflation + at the same time no jobs will cause the whole system to collapse , where there won't be people to give service to or to provide any service to .

[Jaspion]

Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.

I believe if it will bring chaos and disaster to the world - whole stock market will be closed, most of exchanges won't work same way.
So if the disease will increase that much to affect market directly in any way - it will be the end of the market, because people won't think about profit but will think about surviving

[The Sceptical Chymist]

I'm not an economist, and this is my own personal analysis, but I think it all depends on the level of fear and how serious the epidemic actually is.  With the coronavirus, there's a lot of fear but it doesn't seem to be the deadliest virus known to man--and I don't think the death toll is going to be outrageously high.  But it's the perception and people's reaction that affects their spending, productivity, and in the end, the economy.

I think people are overreacting to the coronavirus outbreak, but that's not to say people shouldn't be concerned.  The media tends to make this stuff front-page news in an attempt to scare people into continuously watching TV and checking the news.  And yeah, I'm cynical about all of that.  If this was a virus that was a deadly as HIV was back in the 80s-90s, or ebola, then I'd say all the worry is justified and it might affect the global economy. 

But coronavirus?  I don't think so.

[panganib999]

I'm not an economist, and this is my own personal analysis, but I think it all depends on the level of fear and how serious the epidemic actually is.  With the coronavirus, there's a lot of fear but it doesn't seem to be the deadliest virus known to man--and I don't think the death toll is going to be outrageously high.  But it's the perception and people's reaction that affects their spending, productivity, and in the end, the economy.

The Corona virus today has 90000 cases on which I think is higher than what we had with severe acute reapiratory syndrome and middle east respiratory syndrome (SARS and MERS-COV) that number of cases is crazy knowing that it is just been a month or teo since we detected that disease. I'm quite skeptical about the Chinese economy since we aren't seeing a massive down from them, I see their economic losses as an effort to cure the disease as they built an entire full functioning hospital in just 3 days.

I think people are overreacting to the coronavirus outbreak, but that's not to say people shouldn't be concerned.  The media tends to make this stuff front-page news in an attempt to scare people into continuously watching TV and checking the news.  And yeah, I'm cynical about all of that.  If this was a virus that was a deadly as HIV was back in the 80s-90s, or ebola, then I'd say all the worry is justified and it might affect the global economy. 

But coronavirus?  I don't think so.

Health is wealth, why people would just be walking around when there is a virus. Come on man, this is not a kind of funny jump scare it is all about the expense of all human beings.

[Pffrt]

But coronavirus?  I don't think so.

I was not only reffering to coronavirus, but all other epidemic disease which may be seen in the future. However, don't take this corona virus such easy. Countries dependent on China are suffering heavily. You can see some stats on such countries.

[Darker45]

Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.

It affects the economy sorely, of course. It might cause high inflation considering that the production industry will be terribly affected. The banks will also be affected, of course. A lot of people are now trying to make ends meet using whatever they saved for the previous months and years. There will be much larger withdrawals than deposits. For sure, people will take their money from the banks because they badly need it. This is happening because the business sector, the main money-making sector of any society, is crippled by the spread of the virus. Many employee are laid off. And when people are deprived of their regular sources of income, the inflow of the banks will also get weak.

[Findingnemo]

Still, Corona isn't declared as a pandemic disease but it does affect the economic worldwide even if the disease caused only in China so its a sign how every country's economy is connected to each other so if there is any deadly disease and cure for that diseases if not found yet then its deadliest situation for worldwide economy.

[davis196]

Can coronavirus cause the collapse of banking?No,I don't think so.This is just a virus with 2-3% death ratio and people can get cured.
Can a serious pandemic disease cause the collapse of the banking system?Yes,if it has a really high death ratio and people can't get cured,of course it can,but we haven't witnessed such global plague that would destroy the global economy and finances.Coronavirus is definitely NOT such a dangerous pandemic virus.

[hugeblack]

I do not think that Corona virus is the same risk that the media describe, as the mortality rate did not exceed 3%, while some diseases, such as malaria, kill millions of people in Africa. Perhaps the main goal is to weaken the economy of some countries, make some pharmaceutical companies rich, or even occupy public opinion about many economic failures.
I am not saying that it is fake, but it does not deserve all this media amplification

[Wexnident]

The economy would naturally be affected. Just the fear of a virus spreading around the globe giving deaths to various countries is enough to affect the economy of a country. Just look at how China has become.

https://www.nytimes.com/2020/02/17/business/china-coronavirus-economy.html

As seen clearly on the article, factories have closed down and those that are open or are trying to open are struggling to cope with the fear the virus has spread over the world. In this case though, what has caused the collapse of the economy of other countries is Fear, not the virus itself.

The media has spread news of the virus, most of which contain over the top reactions and comments regarding it. Some even give misleading headlines and some of the people who see them immediately share without even bothering to read the contents. Not to say that safety isn't important, but understanding the current events properly is a pre requisite to determining the proper way of sharing information with regards to the safety of others.

[exstasie]

Researchers are saying a pandemic could wipe out $1.1 trillion from the global GDP: https://markets.businessinsider.com/news/stocks/coronavirus-pandemic-economic-impact-global-growth-outlook-estimated-hit-2020-2-1028937457

That would cause bigger stock market declines and probably an overall multi-year recession, but I wouldn't automatically expect bank runs or banking collapses.

I think people are overreacting to the coronavirus outbreak, but that's not to say people shouldn't be concerned.  The media tends to make this stuff front-page news in an attempt to scare people into continuously watching TV and checking the news.  And yeah, I'm cynical about all of that.  If this was a virus that was a deadly as HIV was back in the 80s-90s, or ebola, then I'd say all the worry is justified and it might affect the global economy. 

But coronavirus?  I don't think so.

There's been 1 death so far in the US. The flu kills something like 50K people per flu season. People do seem to be overreacting.

[AniviaBtc]

Imagine Corona virus or any epidemic disease affected globally. As a result, all the economy will be affected and people will face hard time. Will not it bring an affect in economic balance? Which will turn into high inflation globally and it will result collapse of the banking system. Will it? In my country, the situation is getting worse for product which we are depended on China. I can see a significant inflation here if Corona Virus issue continued.

It affects the economy sorely, of course. It might cause high inflation considering that the production industry will be terribly affected. The banks will also be affected, of course. A lot of people are now trying to make ends meet using whatever they saved for the previous months and years. There will be much larger withdrawals than deposits. For sure, people will take their money from the banks because they badly need it. This is happening because the business sector, the main money-making sector of any society, is crippled by the spread of the virus. Many employee are laid off. And when people are deprived of their regular sources of income, the inflow of the banks will also get weak.

It has an effect to the economy, probably the disease will scare people and can result to a fear. But transferring, sending, doesn't require people to go out and have a physical transaction. If and only if people will withdraw the money for a personal needs or basic needs during epidemic disease. Banks are always open and active, they don't have any hard time manipulating our money. But the corona virus will surely increase the price of our personal needs like face mask, food, medicine, and etc., that's what you called inflation. Business minded people will take advantage of the disease and the banks will also surely benefit to that. Many employee will be harmed and they will have a hard time working.

[Moshaid]

Definitely a global epidemic like corona virus will cause a huge disaster not just only to the economic or banking sector of a country but a great fall in the world economy as well. Same way situations like war cause a nation economy breakdown, a deadly disease as well can as cause such. Some country has already banned any gathering of huge people such as blockchain events which were supposed to take place in china some weeks back also some football events has been suspended while the fight against this virus is still on.

[Upgrade00]

Yes, a pandemic can lead to a collapse of the banking sector. If corona virus were to be officially declared one my prediction would be an instant spike in the value of everything, from meds to food supplies as most people would be sticking up for a hibernation period. But in the subsequent weeks and months, this products would gradually drop as there would be a lack of demand for it and a huge supply. This would crash the value of money and other sectors. I don't think Bitcoin and cryptocurrency would be left out.

Countries which resists the outbreak could still have a flourishing economy despite the disaster.

[crwth]

First of all, I don’t think it could happen today with the coronavirus. There are things to be considered.

• How much is the damage that it cost globally?
• Up to what extent can the country of origin go to solve this problem?
• What is the cost to solve this problem?

It is quite essential to have instant liquidity when it comes to events like this. Probably it would also depend on the leader of the country on which the cases are happening and having a leader who knows what to do would help prevent the catastrophic things to happen. In this case, China has put all its resources or liquidated some of its bonds to have the capital to research on the solution of the problem. It is crucial to solving the problem with the scientific research behind them, and it is not going to be cheap for sure.

This might Affect the banking economy of China, but I don’t think it could cause the banking failure in the world. Probably the central bank of China would have that damage causing the value to decline.

In the end, no prediction would be 100%, so in my case, I don’t think it can collapse the banking sector for the financial aspect of the world. Maybe in a zombie outbreak, it might collapse?

[DoublerHunter]

I do not really think Banking should be the first thing to worry about when it comes to these types of situations. Epidemic diseases spreading out is enough to be worried about human health and that is the most important one. People's health is more important than banking. And affecting the people's health and people having panic with the viruses will surely collapse the economy. Nevertheless, at this point, this epidemic didn't have much affect on the Banking sector.

[South Park]

Unfortunately when a pandemic strikes and it goes around    and strikes country after country not only banks but at the same time everything is bound to collapse , people are leaving their pets behind and fleeing .. the situation is uncontrollable in many countries.

I do think it can for sure cause a surge of prices inflation + at the same time no jobs will cause the whole system to collapse , where there won't be people to give service to or to provide any service to .

This, if a pandemic occurred that had a very high mortality rate then society as we know it will collapse and something new will have to come out of the ashes similar to what happened with the black death in Europe, however those world changing events are really rare and it does not seems like the coronavirus in its current form will have such an effect, however it is surely scaring people and making the stock market and even the price of bitcoin to go down for the time being.

[bitgolden]

There is no way financial world gets absolutely no impact at all but isn't "collapse" a too much of a reaction? Even in China where this was felt the most it doesn't feel like collapsing. They have trillion dollar worth of biggest banks in the world and even they do not feel like getting affected all that much if you ask me. Their banks are going to continue just giving any sort of loan to anyone and the banks are still basically controlled by government so there is really nothing to worry about for them for now.

Even if it gets affected the billions of dollars of profit they are making will go down or maybe even write a loss season but since it is government backed nothing too bad could ever happen.

[Hydrogen]

The 2008 economic collapse was fueled by banks leveraged exposure to declining subprime real estate and other assorted markets.

If the corona virus negatively impacts markets bankers have leveraged positions in, it could be bad for them. History could repeat.

Derivatives markets today are not safer or better regulated than they were in 2008. Its entirely possible we could see a sequel.