The Impact of Covid-19 on the Performance of Banking Sector in Indonesia Stock Exchange
| Main Authors: | Aditanti, Chrisatya Ruth Almira Beata; School of Business and Management, Institut Teknologi Bandung, Koesrindartoto, Deddy Priatmodjo; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Proceedings of International Conference on Management in Emerging Markets (ICMEM) SBM ITB
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4688 https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4688/1578 |
Daftar Isi:
- COVID-19 pandemic has made Indonesia’s economy deteriorate, represented by the decline in Gross Domestic Product and Jakarta Composite Index. One of the affected industries is the banking industry, which plays vital role in country’s economy. To understand how the industry withstands, this research is conducted to examine the effects of the declining economy due to COVID-19 on the performance of banking sector in Indonesia Stock Exchange, represented by ability to obtain earnings using assets and equity. The calculation uses Multiple Linear Regression with dependent variables of ROA and ROE, and independent variables of CAR, LDR, BOPO, Bank Ownership, and BUKU. The data is quarterly financial report with period of June 2019 – September 2020, divided into two groups: pre-COVID and post-COVID. The results show that there has been a decline of ROA and ROE on average after the pandemic occurs. BOPO is found to have significant negative relation with ROA and ROE, while LDR is found to have positive relation with both dependent variables. CAR and OWN appear to have significant relation only with ROE. Lastly, there is no significant relation between ROA and ROE with BUKU. Keywords: COVID-19 pandemic, financial performance, listed banks, Multiple Linear Regression