Article Sidebar

Download
PDF
Statistic
Read Counter : 279 Download : 274

Main Article Content

Abstract

Covid-19 has had an impact on the Indonesian banking industry, slowing down the rate of economic growth, one of which is caused by slowing credit growth in the community, resulting in decreased profitability in banks. The goal of this study is to examine bank financial performance before and after the Covid-19 outbreak, as well as to provide alternative techniques for improving Indonesian bank financial performance. The data used in this research is secondary data obtained from annual reports on audited banking from 2018 to 2021, which can be accessed on the IDX website. This study employs multiple regression data analysis to assess performance using three financial ratios:Net Interest Margin, Capital Adequacy Ratioand Return On Assetsto GDP. The findings of this study show that theNet Interest Margin, Capital Adequacy Ratio and Return On Assetsvariables have a significant positive effect on GDP in the phenomena before and after the Covid-19 pandemic

Keywords

Loan Deposit Ratio Net Interest Margin Capital Adequacy Rati Commercial Bank Covid-19 Pandemic

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

By exercising the Licensed Rights, You accept and agree to be bound by the terms and conditions of this Creative Commons Attribution-NonCommercial 4.0 International Public License.

How to Cite
Zaki, A. (2023). The Effect of Net Interest Margin Ratio, Capital Adequacy Ratio and Return on Assets at Commercial Banks on Gross Domestic Product Before and after the Covid-19 Pandemic in Indonesia. Kontigensi : Jurnal Ilmiah Manajemen, 11(1), 155-162. https://doi.org/10.56457/jimk.v11i1.334

References

  1. Anggari, NLS, & Dana, IM (2020). The Effect of Capital Adequacy Ratio, Third Party Funds, Loan to Deposit Ratio, Bank Size on Profitability in Banking Companies on IDX. American Journal of Humanities and Social Sciences Research, 4(12), 334–338. www.ajhssr.com
  2. Anggriani, R., & Muniarty, PM (2020). The Effect of Non-Performing Loans (NPL) and Capital Adequacy Ratio (CAR) on Profitability (ROA) at PT. Bank Central Asia (BCA), TBK. Ilomata International Journal of Management, 1(3), 121–126. https://doi.org/10.52728/ijjm.v1i3.121
  3. Ariwinata, IPS and Badjra, IB (2021). Profitability , Company Size , and Gross Domestic Product on Dividend Policy ( Empirical Study of Service Companies ... American Journal of Humanities and Social Sciences Research, 5(4), 549–554.
  4. Astawa, K., Suhadak, & Rahayu, S, M. (2019). Finance and Management Scholar at Riphah International University Islamabad, Pakistan, Faculty of Management Sciences. Research Journal of Finance and Accounting, 1(Ic), 203–222. https://doi.org/10.7176/RJFA
  5. Badawi, A. (2017). Effect of Credit Risk, Liquidity Risk, and Market Risk Banking to Bank Profitability (Study on Devised Banks in Indonesia Stock Exchange). European Journal of Business and Management, 9(29), 1–8. www.iiste.org
  6. Brastama, RF, & Yadnya, IP (2020). The Effect of Capital Adequacy Ratio and Non Performing Loans on Banking Stock Prices with Profitability as Intervening Variable. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(12), 43–49. https://www.ajhssr.com/the-effect-of-capital-adequacy-ratio-and-non-performing-loan-on-banking-stock-prices-with-profitability-as-intervening-variable/
  7. Brodeur, A., Gray, D., Islam, A., & Bhuiyan, S. (2021). A literature review of the economics of COVID-19. Journal of Economic Surveys, 35(4), 1007–1044. https://doi.org/10.1111/joes.12423
  8. Buallay, A. (2019). Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), 98–115. https://doi.org/10.1108/MEQ-12-2017-0149
  9. Caclini, MP (2022). Financial Model : A Practical Tool for Financial Management Practices of Micro-enterprises in Ifugao , Philippines By I . Introduction. Res Militaris, 12(6), 21–36.
  10. Caraka, RE, Lee, Y., Kurniawan, R., Herliansyah, R., Kaban, PA, Nasution, BI, Gio, PU, Chen, RC, Toharudin, T., & Pardamean, B. (2020). Impact of COVID-19 large scale restriction on environment and economy in Indonesia. Global Journal of Environmental Science and Management, 6(Special Issue), 65–84. https://doi.org/10.22034/GJESM.2019.06.SI.07
  11. Choiriyah, C., Fatimah, F., Agustina, S., & Ulfa, U. (2021). The Effect Of Return On Assets, Return On Equity, Net Profit Margin, Earning Per Share, And Operating Profit Margin On Stock Prices Of Banking Companies In Indonesia Stock Exchange. International Journal of Finance Research, 1(2), 103–123. https://doi.org/10.47747/ijfr.v1i2.280
  12. Coscieme, L., Mortensen, LF, Anderson, S., Ward, J., Donohue, I., & Sutton, PC (2020). Going beyond Gross Domestic Product as an indicator to bring coherence to the Sustainable Development Goals. Journal of Cleaner Production, 248, 119232. https://doi.org/10.1016/j.jclepro.2019.119232
  13. Dao, BTT, & Nguyen, KA (2020). Bank capital adequacy ratio and bank performance in Vietnam: A simultaneous equations framework. Journal of Asian Finance, Economics and Business, 7(6), 39–46. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.039
  14. Devitra, J. 2013. Financial Performance and Efficiency on Banking Stock Returns on the Indonesia Stock Exchange Period 2007 - 2011. Journal of Finance and Banking Vol. 15 No. 1. ISSN 1410 - 8623.
  15. Duy, S., N., Quang, L., T., Hung, P., K., & Michael, M. 2020. Net Interest Margin of Commercial Banks in Vietnam. Journal Advances in Decision Sciences. Vol. 24, Iss. 1.
  16. El Khoury, R., Nasrallah, N., & Alareeni, B. (2021). ESG and financial performance of banks in the MENAT region: concavity–convexity patterns. Journal of Sustainable Finance and Investment, 0(0), 1–25. https://doi.org/10.1080/20430795.2021.1929807
  17. Elnahass, M., Quang, V., & Li, T. (2020). Global Banking Stability in the Shadow of Covid-19 Outbreak Global Banking Stability in the Shadow of Covid-19 Outbreak. Journal of International Financial Markets, Institutions and Money, Volume 72,(September).
  18. Gallo, ACM, & Historiador, VRG (2022). Financial Literacy of the Select Micro and Small Enterprise Owners and Business Performance I . Framework of the Study II . Materials and Methods. Res Militaris, 12(6), 155–167.
  19. Hanoon, RN, Rapani, NHA, & Khalid, AA (2020). The correlation between internal control components and the financial performance of Iraqi banks is a literature review. Journal of Advanced Research in Dynamical and Control Systems, 12(4 Special Issue), 957–966. https://doi.org/10.5373/JARDCS/V12SP4/20201567
  20. Haryanto, S., Chandrarin, G., & Bachtiar, Y. (2019). Bank Size, Risk and Market Discipline with A Deposit Insurance: Evidence of Banking in Indonesia. AFRE (Accounting and Financial Review), 2(2). https://doi.org/10.26905/afr.v2i2.3717
  21. Ichsan, RN, Suparmin, S., Yusuf, M., & Ismal, R. (2021). Determinant of Sharia Bank's Financial Performance during the Covid-19 Pandemic. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), Volume 4(1), 298–309.
  22. Cashmere (2020). Business Feasibility Study, Jakarta : Prenadamedia Group.
  23. Kurniadi, R. 2012. Effect of CAR, NIM, LDR on Stock Returns of Indonesian Banking Companies. Accounting Analysis Journal 1 (1) (2012)ISSN 2252-6765.
  24. Marinkovic, S., and Radovic, O. 2010. On the determinants of interest margin in transition banking: the case of Serbia. Journal Managerial Finance Vol. 36 No. 12, p. 1028-1042, © Emerald Group Publishing Limited 0307-4358.
  25. Marviana, RD 2009. The Effect of Fundamental Factors on Stock Returns of Banking Companies Listed on the Indonesian Stock Exchange. Thesis of the Faculty of Economics, University of North Sumatra, Medan.
  26. Maune, A. (2018). Volume XIII Editorial Board Editor in Chief Executive Manager : Editors. Journal of Applied Economic Sciences, XIII(8).
  27. Muthoni, MI, Mwangi, LW, & Muathe, SMA (2020). CREDIT MANAGEMENT PRACTICES AND LOAN PERFORMANCE : EMPIRICAL EVIDENCE FROM COMMERCIAL BANKS IN KENYA. International Journal of Current Aspects in Finance, Banking and Accounting, 2(1), 51–63. https://doi.org/10.35942/ijcfa.v2i1.105
  28. O Abba, G., Okwa, E., Soje, B., & N Aikpitanyi, L. (2018). Determinants of Capital Adequacy Ratio of Deposit Money Banks in Nigeria. Journal of Accounting & Marketing, 07(02). https://doi.org/10.4172/2168-9601.1000271
  29. Rahadian, R., & Permana, D. (2021). The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirements Based on Commercial Banks for Business Activities (BUKU) I 2015-2020. European Journal of Business and Management Research, 6(6), 42–46. https://doi.org/10.24018/ejbmr.2021.6.6.1084
  30. Rajindra, R., Guasmin, G., Burhanuddin, B., & Anggraeni, RN (2021). Costs and Operational Revenue, Loan to Deposit Ratio Against Return on Assets: A Case Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(5), 109–115. https://doi.org/10.13106/jafeb.2021.vol8.no5.0109
  31. Restianti, T., & Agustina, L. (2018). The Effect of Financial Ratios on Financial Distress Conditions in Sub Industrial Sector Companies. Accounting Analysis Journal, 7(1), 25–33. https://doi.org/10.15294/aaj.v5i3.18996
  32. Russon, Manuel G and Bansal, V. (2021). A Refined Model to Predict Near-Term US Real GDP Growth. Journal of Applied Business and Economics, Vol.23(5), 30–36.
  33. Sani Akbar, J., Pertiba, S., & Pinang, P. (2021). the Effect of Return on Assets and Return on Equity on Price To Book Value on Banking Companies Listed on the Indonesia Stock Exchange. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 5(2), 2614–1280. http://www.jurnal.stie-aas/ijebar
  34. Siska, E., Ahmed, A., Gamal, M., Ameen, A., & Amalia, MM (2021). Analysis Impact of Covid-19 Outbreak on Performance of Commercial Conventional Banks : Evidence from Indonesia. International Journal of Social and Management Studies, 02(06), 8–16.
  35. Sunaryo, D. (2020). The Effect Of Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), Non-Performing Loans (NPL), and Loan To Deposit Ratio (LDR) Against Return On Assets (ROA) In General Banks In Southeast Asia 2012-2018. Ilomata International Journal of Management, 1(4), 149–158. https://doi.org/10.52728/ijjm.v1i4.110
  36. Supatmin. (2021). The Effect of Capital Adequacy Ratio ( CAR ) and Loan To Deposit Ratio ( LDR ) on Return On Assets ( ROA ) at PT Bank BNI ( Persero ) Period 2008 – 2017. Journal of Business, Management, and Accounting E-ISSN 2714-870X P, 3(1), 295–302.
  37. Yu, H. (2017). Motivation behind China's 'one belt, one road' initiatives and establishment of the Asian infrastructure investment bank. Journal of Contemporary China, 26(105), 353–368. https://doi.org/10.1080/10670564.2016.1245894.