The impact of economic instability on credit concessions: the case of the Covid-19 pandemic

Purpose: This research aims to analyze the impacts of the economic instability caused by Covid-19 on the volume of credit issuance in Brazil. Methodology: The research methodology employed time series regression models in the Brazilian market and was based on historical values of macroeconomic variables. The study period spans from February 2013 to April 2023, divided into pre-pandemic (02/2013-02/2020) and pandemic (03/2020-04/2023) periods. Results: It was observed that the impact of the Covid-19 pandemic on credit issuance volume was minor when controlling for other macroeconomic characteristics. There are indications that only the year 2020 exhibited more significant variations, with the average during the 2020 to 2023 period being not so different from the pre-pandemic period. Contributions of the Study: This study suggests that the crisis had only a temporary effect and that the economic measures taken during this period may have contributed to the recovery, indicating preparation for future pandemics that experts expect to occur.