Astuti, Suci Wiji and Lindrianasari, . and Septiyanti, Ratna and Prasetyo, Tri Joko and Syaipudin, Usep (2023) Analysis of Banking Health before and During Covid-19 Using the RGEC Method. Asian Journal of Economics, Business and Accounting, 23 (19). pp. 134-144. ISSN 2456-639X
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Abstract
Aims: This study aims to investigate the health condition of the banking sector before and during the Covid-19 pandemic.
Study Design: This study uses a quantitative descriptive approach to evaluate the condition of the banking sector by analyzing the annual reports published on each bank's website.
Place and Duration of Study: The author uses data from banking financial reports in Indonesia for the Bank Group Based on Core Capital (KBMI), which consists of one to four banks in the 2018-2021 period.
Methodology: The RGEC model (Risk Profile, Good Corporate Governance, Earning, Capital) was utilized to analyze the data, assessing various aspects including risk profile, corporate governance, profitability, and capital adequacy.
Results: The study's findings indicated that among KBMI 1, 3, and 4 banks, there were significant differences in banking Non-Performing Loans (NPLs) before and during Covid-19, while no significant differences were observed in Good Corporate Governance (GCG), Return on Assets (ROA), and Capital Adequacy Ratio (CAR). In the case of KBMI 2 bank, there were no significant differences observed in NPLs, GCG, ROA, and CAR before and during Covid-19. The NPL ratio, which measures credit risk or financing provided to third parties, showed no significant difference between the average NPL ratio before and during Covid-19.
Conclusion: The advent of the Covid-19 era has resulted in a decline in the stability of banks, suggesting a reduced ability to maintain stability, efficiency, and the quality of credit ratios. However, overall, the banking sector during Covid-19 still remained in the "good" category based on the standards set by Bank Indonesia.
Item Type: | Article |
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Subjects: | Open Research Librarians > Social Sciences and Humanities |
Depositing User: | Unnamed user with email support@open.researchlibrarians.com |
Date Deposited: | 09 Oct 2023 08:54 |
Last Modified: | 09 Oct 2023 08:54 |
URI: | http://stm.e4journal.com/id/eprint/1684 |