Impact of the Covid-19 Pandemic on the Financial Performance of Sharia Commercial Banks: an Empirical Evidence from Indonesia

Sugiharto, Toto; Azimkulovich, Eshmatov Sanjar; Misdiyono, Misdiyono

doi:10.24042/febi.v6i1.9014

Cited by 16 publications

(16 citation statements)

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“…It shows that the Covid-19 Pandemic in Indonesia has had no impact on the ability of Islamic banks to manage non-performing financing. These results are consistent with the research of (Sutrisno et al, 2020); (Azmi et al, 2021); (Siswantoro, 2022); Utami and Makhrus (2022);and Sugiharto et al (2021), who also found that there was no difference in the NPF ratio before and during the Covid-19 Pandemic. However, this result opposes Rifqi & Condro (Muhammad & Triharyono, 2019), who found a difference in NPF before, during, and after the global financial crisis of 2008.…”

Section: Credit Risksupporting

confidence: 92%

“…This result is consistent with several previous studies, i.e., by Sutrisno et al (2020), Siswantoro (2022), and Utami and Makhrus (2022), for the ROA ratio. However, the NOM ratio of these results is inconsistent with several studies, Sutrisno et al (2020);and Sugiharto et al (2021). It is due to the extended study period, and in 2021 economic conditions in Indonesia have begun to return to stability.…”

Section: Profitabilitycontrasting

confidence: 58%

“…These studies proved that Islamic banks in Indonesia are deemed to have good resilience in facing economic shocks due to the pandemic. Therefore, based on several previous studies that researched comparing the health levels of Islamic banks before and during the Covid-19 Pandemic Sutrisno et al (2020); Azmi et al (2021); Candera and Indah (2021); Siswantoro (2022); Utami andMakhrus (2022), andSugiharto et al (2021) then the hypothesis in this study can be written as follows: H1: There is no difference in the Islamic bank's soundness level before and during the COVID-19 pandemic in Indonesia.…”

Section: Literature Reviewmentioning

confidence: 96%

See 2 more Smart Citations

Are Islamic Banks Still Sound Amidst Pandemic?

Canggih

Nurafini²,

Suryaningsih³

et al. 2022

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The paper aims to check whether Islamic banks in Indonesia remain sound amid the Covid-19 Pandemic by comparing the soundness levels of Islamic commercial banks before and during the Covid-19 Pandemic. This research used a quantitative approach with the non-parametric Wilcoxon Signed-Rank Test to compare bank soundness before and during the Covid-19 Pandemic. The bank's resilience was measured using the Risk-Based Bank Rating (RBBR), e.g., Non-Performing Finance (NPF), Finance to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and Net Operating Margin (NOM). The study exempted aspects of Good Corporate Governance since it is qualitative. The study used quarterly data in 2018-2019 (before the pandemic) and 2020-2021 (during the pandemic). The results showed a significant difference between CAR before and during the Covid-19 Pandemic. Meanwhile, NPF, FDR, ROA, and NOM showed no significant differences before and during the Covid-19 Pandemic. Based on the results, it can be concluded that the Covid-19 Pandemic generally does not affect the Islamic banks' soundness level, except for capital. It showed that the Islamic Bank proved to be resilient against crises. The study adds literature on the resilience of Islamic banks, particularly during the Covid-19 Pandemic, and validates the RBBR measurement to analyze the bank's soundness. In addition, the results of this study are also expected to be a consideration for policymakers to design the right policies for optimizing Islamic banks to thrive and support post-pandemic recovery.

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Section: Credit Risksupporting

confidence: 92%

Section: Profitabilitycontrasting

confidence: 58%

Section: Literature Reviewmentioning

confidence: 96%

See 1 more Smart Citation

Are Islamic Banks Still Sound Amidst Pandemic?

Canggih

Nurafini²,

Suryaningsih³

et al. 2022

View full text Add to dashboard Cite

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“…Being priority customers, the withdrawals greatly impacted the IRBs. However, in some areas, the virus had minor effects on the performance of Capital Financing (Mansour et al, 2021;Sugiharto et al, 2021) due to the variation between regions in their economic strength and the effectiveness of the authorities in implementing social restrictions (Hill et al, 2008;Roziqin et al, 2021;Sevindik et al, 2021;Vidyattama, 2013). The resilience of Capital Financing during the pandemic was mainly attributed the IRBs' orientation to profit and loss sharing and strict supervision in the financing process (Omar, 2020;Rabbani et al, 2021).…”

Section: Resultsmentioning

confidence: 99%

Islamic Bank Deposits during COVID-19 Pandemic: A Spatial Finance Approach

2022

JEM

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This study aims to determine factors affecting deposits in banks during COVID-19 pandemic by employing a spatial finance approach on a sample of Islamic Rural Banks in the Indonesian archipelago. The results showed that the COVID-19 pandemic, capital financing, and bank asset had a spatial influence on bank deposits. Specifically, while COVID-19 pandemic reduces bank deposits, capital financing and bank assets increase these. Using Spatial Lag Model and Local Indicator of Spatial Autocorrelation through Spatial Rate Analysis, the study further found that there is a potential spillover effect in certain provinces based on the bank deposit relationship with COVID-19, financing and bank assets. This implies that the three factors tend to spatially affect the socio-economic activities of the neighboring areas of certain provinces. This study may shed some light for the government in determining post-COVID-19 economic recovery policies using a geographical approach in providing information on financial interactions between regions.

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“…It can be seen from the increase in financial ratios such as CAR and ROA. (Pradesyah & Putri, 2021), (Sugiharto et al, 2021), (Afandi, 2021) and (Fakhri & Darmawan, 2021) also use financial ratios in measuring the performance of Islamic banks.…”

Section: Introductionmentioning

confidence: 99%

Financial Performance of Islamic Commercial Banks Before and During the Covid-19 Pandemic in Indonesia

Wastuti

Hasan²

2022

iijse

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The covid-19 pandemic has dropped the economy of the world. Islamic banks as part of the economy are also affected by this pandemic. The study aims to provide an overview of the performance of Islamic Commercial Banks (BUS) in Indonesia before and during the Covid-19 pandemic. The measurement of financial performance will use several financial ratios, namely ROA, CAR, NPF, FDR, BOPO, and NOM. The research sample is all BUS in Indonesia. The years 2018 and 2019 will be used as the period before the Covid-19 pandemic, while 2020 and 2021 will be used as the period during the Covid-19 pandemic. It uses a quantitative method with measurement tools: independent sample t-test and multiple linear regression. The results of the independent sample t-test are the CAR, FDR, and BOPO variables have differences in the period before the pandemic and during the pandemic. While the ROA, NPF, and NOM variables have no difference in the period before and during the pandemic. From the partial multiple linear regression test (t-test), financial ratios in the form of BOPO and NOM influence ROA. While the variables CAR, FDR, and NPF do not affect ROA. On the other hand, simultaneously the variables CAR, NPF, FDR, BOPO, and NOM affect ROA. The research results from this article can be used as a source of information by stakeholders in making policies for a better BUS future.

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Impact of the Covid-19 Pandemic on the Financial Performance of Sharia Commercial Banks: an Empirical Evidence from Indonesia

Cited by 16 publications

References 0 publications

Are Islamic Banks Still Sound Amidst Pandemic?

Are Islamic Banks Still Sound Amidst Pandemic?

Islamic Bank Deposits during COVID-19 Pandemic: A Spatial Finance Approach

Financial Performance of Islamic Commercial Banks Before and During the Covid-19 Pandemic in Indonesia

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