Industry Performance Analysis Banking Before and After Covid-19 (Panzar - Rosse Model)

Mathora Tatiana Sinambela, Ranti April Yani, Nugraha Pratama, Ahmad Albar Tanjung

Abstract


Banking as a financial intermediary institution has a big role in improving and driving the economy. However, with the pandemic, the banking sector has experienced many disruptions and an increase in various risks related to bank performance. This research was conducted with the aim of knowing that there were significant differences between the financial performance of conventional commercial banks listed on the IDX before and during the Covid-19 pandemic. The approach used is the Panzar-Rosse approach which assesses financial performance based on 5 aspects, namely capital, assets, management, earnings, and liquidity which are then projected by the CAR, NIM, LDR, BOPO and ROA ratios respectively. In this study using the Panzar-Rosse non-structural approach using secondary data from commercial banks in Indonesia for the 2017-2021 period. Research shows that there are significant differences between CAR, NIM, LDR, BOPOand ROA of conventional commercial banks before and during the Covid-19 pandemic.

Keywords


capital adequacy ratio (CAR) , net interest margin (NIM) , loan to deposit ratio (LDR) , operating expenses operating income (BOPO) and return on assets (ROA)

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.234

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