The Relationship between COVID-19 Pandemic and Non-Performing Loan Ratio in Indonesian Conventional Banks
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07
Abstract
This study examines the relationship between COVID-19 variables (COVID-19 cases and COVID-19 deaths) and the nonperforming loan (NPL) ratio in Indonesian conventional banks from Q1 2017 to Q4 2022. Data from 56 conventional banks— comprising 4 government-owned and 52 privately-owned banks, were gathered from the Indonesian Financial Service Authority’s bank publication reports. Utilizing a quantitative approach, panel data regression with a fixed effect model is employed, with the NPL ratio as the dependent variable. COVID-19 cases and COVID-19 deaths are the main independent variables. Control variables include loan-to-deposit ratio, bank size, return on assets, regulatory capital ratio, equity ratio, GDP growth rate, inflation rate, overnight rate, and unemployment rate. The analysis is conducted separately for COVID-19 cases and COVID-19 deaths to independently evaluate their impact on the NPL ratio. Results indicate a significant positive relationship between COVID-19 cases and COVID-19 deaths with the NPL ratio. Additionally, the study identifies negative significant relationships between the NPL ratio and return on assets, loan-to-deposit ratio, bank size, regulatory capital ratio, and GDP growth rate.
Authors and Affiliations
Muhammad Haykal Hamdi, Taufik Faturohman,
Keywords
Related Articles
- EP ID EP740217
- DOI 10.47191/ijcsrr/V7-i7-27
- Views 84
- Downloads 0
The Influence of Spiritual Leadership on Teacher’s Organizational Commitment Based on (Louis W. Fry Model): A Literature Review
This study aimed to investigate the influence of principal’s spiritual leadership on teacher’s organizational commitment. Spiritual leadership is very interesting to study, because this leadership concept is a synthesis...
Semantic Components of English Directive Speech Act Verbs (Order, Command, Instruct)
This research focuses on synonymous English speech act verbs that mean “giving order” (directive). The verbs analyzed in this study are those with very close synonymy, namely order, command, and instruct. The aim of this...
Synthesis and Characterization of Nanoherbal of Reed Root Ethanol Extract (Imperata cylindrica L) Using Ionic Gelation Method
The purpose of this study was to determine the characteristics of nanoherbal of reed root ethanol extract (Imperata cylindrica L) and optimal variations of alginate and CaCl2 for the manufacture of nanoherbal of reed roo...
Navigating Consumer Behavior in the Niche Market of Artisan Tea Blends: Insight from Indonesia’s E-Commerce Sector
This research explores the factors that influence consumer behavior when purchasing artisan tea blends through e-commerce platforms. It investigates how aspects such as personal characteristics, cultural perceptions, tru...
A City Image Study by Kevin Lynch’s Theoretical Approach: A Case Study of Pontianak City, West Kalimantan Province of Indonesia
Pontianak City is the capital city of West Kalimantan Province reaches area coverage of 118.31 km2.This city has multiple functions as the government and economic centrals of the West Kalimantan Province of Indonesia. It...