ASSESSING THE IMPACT OF COVID-19 ON PROFITABILITY AND LIQUIDITY IN THE BANKING SECTOR - INSIGHTS FROM BANK MANAGERS IN THE REPUBLIC OF SERBIA

This research delves into the multifaceted relationship between profitability, liquidity, and various determinants within the banking sector, with a particular focus on the impact of the COVID-19 pandemic. By investigating the experiences and perceptions of bank managers in the Republic of Serbia, we gain a comprehensive understanding of how the pandemic affected key banking performance metrics. The study employs a structured questionnaire distributed to bank directors in major cities, resulting in an 80% response rate.Our analysis of the survey data reveals critical insights into the responses of bank managers, highlighting the significance of corporate governance mechanisms, competition levels, operational efficiency, and liquidity management strategies in shaping a bank’s profitability. Furthermore, we examine how regulatory measures introduced during the pandemic influenced bank performance.In addition to insights from international studies, this paper provides valuable findings specific to the Serbian banking sector. The results offer crucial implications for bank management, policymaking, and future business strategies. They underscore the importance of addressing challenges and seizing opportunities in the evolving banking landscape.