EXPLORING THE IMPACT OF ICT DIFFUSION IN THE EUROPEAN BANKING INDUSTRY: EVIDENCE IN THE PRE- AND POST-COVID-19

Based on daily data from Thomson Reuter's Re ̄nitiv, we investigate the effect of information and communication technology (ICT) on the pro ̄tability and risk of the European banking industry during the COVID-19 pandemic. Specifically, we empirically examine whether and how ICT di®usion a®ects banks' stock return, credit default swaps (CDS) spreads and market volatility over the period spanning from January 1, 2020, to March 31, 2020. Our evidence demonstrates that ICT improves banks' performance measures and reduces risks. These e®ectsare more significant in the post-COVID-19 period.