An Impact of the COVID-19 Pandemic on the Financial Performance Banking Sector Registered in Indonesia Stock Exchange

Abstract

The research objectives are to determine the implications of the Covid-19 Pandemic on the financial performance of the banking sector industry registered in the Indonesia Stock Exchange before and during the current outbreak. Financial performance quantified CAR, LDR/FDR, and CAR proxies as profitability, liquidity, and solvency. This research uses the causal-comparative design with the quantitative. The study's final sample involved 34 banking enterprises acquired through the purposive sampling method—data analysis using statistical with the Independent Sample T-Test technique. The findings show that each ROA, LDR/FDR, and CAR proxy had not significantly distinctive financial performance during the initial period and the Covid-19 pandemic. Therefore, there is no substantial change in the financial performance of the banking industry, which consists of a combination of ROA, LDR/FDR, and CAR, both before and throughout the Covid-19 pandemic.