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The performance of rural banks in Indonesia during the Covid-19 pandemic

Author

Listed:
  • Sri Mulyati

    (Universitas Islam Indonesia)

  • Nurfauziah

    (Universitas Islam Indonesia)

  • Arif Singapurwoko

    (Universitas Islam Indonesia)

  • Kartini Kartini

    (Universitas Islam Indonesia)

Abstract

Previous studies analyzing the relationship between the performance of rural banks and the COVID-19 pandemic are very limited in number. This study aims to find out how the impact of the COVID-19 pandemic on the performance of rural banks in Indonesia. This study uses panel regression data to examine the effect of the COVID-19 pandemic on the capital adequacy ratio (CAR) from the capital aspect, non-performing loan (NPL) from the asset quality aspect, return on assets (ROA) from the earning aspect, and cash ratio (CR) from the aspect of liquidity. Our findings explain that the COVID-19 pandemic has a positive effect on CAR and NPL, a negative effect on ROA, and no effect on CR. Key Words:COVID-19, Rural Bank, Financial Performance, Indonesia

Suggested Citation

  • Sri Mulyati & Nurfauziah & Arif Singapurwoko & Kartini Kartini, 2022. "The performance of rural banks in Indonesia during the Covid-19 pandemic," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 300-306, September.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:300-306
    DOI: 10.20525/ijrbs.v11i6.1938
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    References listed on IDEAS

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    3. Goodell, John W., 2020. "COVID-19 and finance: Agendas for future research," Finance Research Letters, Elsevier, vol. 35(C).
    4. Bipasha Barua & Suborna Barua, 2021. "COVID-19 implications for banks: evidence from an emerging economy," SN Business & Economics, Springer, vol. 1(1), pages 1-28, January.
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