Abstract: The banking sector being a highly exposed to the risks of data theft and changes in policies and practices due to unprecedented events such as Covid-19 pandemic requires attention on constant monitoring and improvement. This paper governs the changes in banking risk management policies during the pandemic period. In order to develop better ideas on the effectiveness of banking risk management policies, a secondary method has been followed while applying action research as a type of qualitative research design to collect relevant data and present the same. Moreover, application of systematic review technique has helped to thoroughly present the findings from chosen 8 articles that are the sample size of this study. Here, based on the outcomes of thematic analysis, it has been concluded that banking risk management is closely associated with the credit risk aspects. Besides, emphasis on measuring the individual credit worthiness can be beneficial for banks to maintain balance between investors and borrowers. This would also be supportive in controlling the lending activities while applying the IRB (internal rating-based) model of banking risk management can help to evaluate the asset quality of banks and measure the credit risks for developing better strategies to deal with the financial risks.

Keywords : Asset Quality, Banking Risk Management, Capital and Liquidity Scarcity, Covid-19 Crisis, Credit Risk, Economic Damage, Financial System, Individual Credit Worthiness, Risk Management Policies.