Sustainable Economic Growth Support through Credit Transmission Channel and Financial Stability: In the Context of the COVID-19 Pandemic

Teresienė, Deimantė; Keliuotytė-Staniulėnienė, Greta; Kanapickienė, Rasa

doi:10.3390/su13052692

Cited by 19 publications

(22 citation statements)

References 50 publications

(34 reference statements)

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“…Restructuring is necessary for the banking system to avoid future losses (Kloks, 2021;Teresienė et al, 2021). This is inseparable from the strategy pursued by sharia bank managers, including risk mitigation by mapping debtors, who are feasible to be restructured and who are not yet feasible (Ariffin & Kassim, 2014…”

Section: Discussionmentioning

confidence: 99%

“…Government Regulation Number 21 of 2020 to reduce the transmission of COVID-19 has an impact on the performance of business activities, including banks and their partners (Teresienė et al, 2021). The announcement of COVID-19 and government regulations related to this phenomenon caused the development of existing businesses in Indonesia to be limited.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…Restructuring is one of the government's efforts to overcome various financial problems that have arisen due to the COVID-19 pandemic. Restructuring is necessary for the banking system to avoid future losses (Kloks, 2021;Teresienė et al, 2021). Credit restructuring is predicted to make it easier for customers to fulfill their responsibilities to the bank, as well as the health of banking liquidity.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

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Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions

Wahyuni

Pujiharto

Azizah

et al. 2021

Banks and Bank Systems

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This study aims to compare the credit risk and profitability of banks in Indonesia. For this, the descriptive-quantitative method is used. The sample collection is based on the purposive sampling method. The study involved 71 Indonesian banks listed on the Indonesian Stock Exchange and Financial Services Authority, both conventional and Sharia. The research data are secondary data that include published results of quarterly financial reports of both conventional and sharia banks obtained from the website of the Financial Services Authority or the official websites of banks. The profitability of banks in making profit is measured by the Return on Assets ratio. The method of analysis used is the paired sample t-test. The results show significant differences in nonperforming loans (NPL) before and after the COVID-19 pandemic in conventional banking. However, there is no significant difference in Sharia banking. Moreover, there is no significant difference in profitability before and after the new normal implementation. This study provides empirical evidence that Indonesia’s banking restructuring policies to anticipate the impact of COVID-19 did not work optimally. The study is expected to help bank managers and the Financial Services Authority as a basis for evaluating the implementation of government policies to restructure the banking system.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Section: Literature Review and Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions

Wahyuni

Pujiharto

Azizah

et al. 2021

Banks and Bank Systems

View full text Add to dashboard Cite

show abstract

“…In addition, the U.S. fiscal policy provided some compensation for households and businesses. Even though both monetary and fiscal policy could be viewed as a way to stimulate economic development, (Teresiene et al, 2021) indicate that the monetary policy has limited possibilities to support the economy. On the other hand, the containment policy, including entry restrictions, social distancing mandates and put on lockdown, might damage the economic (Baldwin and Tomiura, 2020).…”

Section: Introductionmentioning

confidence: 99%

The impacts of Covid-19 pandemic on the smooth transition dynamics of stock market index volatilities for the Four Asian Tigers and Japan

Liu¹,

Chun²,

2021

IJRBS

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This rapid propagation of the Novel Coronavirus Disease (COVID-19) has caused the global healthcare system to break down. The infectious disease originated from East Asia and spread to the world. This unprecedented pandemic further damages the global economy. It seems highly probable that the COVID-19 recession changes stock market volatility. Therefore, this study resorts to the Generalized Autoregressive Conditional Heteroscedastic (GARCH) model with a smooth transition method to capture the influences of the COVID-19 pandemic on the dynamic structure of the stock market index volatilities for some Asian countries (the Four Asian Tigers and Japan). The empirical results show that the shocks of the COVID-19 change the dynamic volatility structure for all stock market indices. Moreover, we acquire the transition function for all stock market index volatilities and find out that most of their regime adjustment processes start following the outbreak of the COVID-19 pandemic in the Four Asian Tigers except South Korea and Japan. Additionally, the estimated transition functions show that the stock market index volatilities contain U-shaped patterns of structural changes. This article also computes the corresponding calendar dates of structure change about dynamic volatility patterns. In the light of estimation of location parameters, we demonstrate that the structure changing the date of stock market index volatility for South Korea and Japan has occurred in late 2019.

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“…This slowdown has been recently compounded by the COVID-19 pandemic. Teresiene et al (2021) found that "the spread of the COVID-19 pandemic has a statistically significant negative effect on banking sector credit risk, financial distress, banking sector profitability, and solvency". In addition, "while the overall financial distress decreased and banking sector liquidity increased, the profitability and solvency decreased".…”

Section: Introductionmentioning

confidence: 99%

Challenging Times for Insurance, Banking and Financial Supervision in Saudi Arabia (KSA)

Orlando

Bace

2021

Administrative Sciences

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The financial system in the Kingdom of Saudi Arabia (KSA) has a history of relative soundness, particularly in banking, due to comparatively strict and enforced domestic supervision, and supported by what has been for the most part a reasonably robust economy. However, the sector is facing challenges of a sluggish economy, need for reform and negative effects of the COVID-19 pandemic. This paper strives to assess how well the government thus far has responded to the challenges in the financial sector. The working hypothesis is that the insurance industry has improved its position, resulting in higher efficiency and profitability and lower risk. This is an industry historically plagued by too many players, financial issues and less than adequate controls. The analysis undertaken bears out the hypothesis, as revealed by the enhanced contribution made by the industry since the pandemic. Analysis suggests that strides have been made in that industry in terms of helping to diversify the economy with the onset of the pandemic. Moreover, evidence is provided that the sensitivity to changes in oil volumes (rather than to changes in oil prices) is a key risk factor for the financial sector in the KSA. These findings have implications for policy makers in terms of leveraging the pandemic conditions as an opportunity to drive further reform and diversify the economy with lower risk.

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Sustainable Economic Growth Support through Credit Transmission Channel and Financial Stability: In the Context of the COVID-19 Pandemic

Cited by 19 publications

References 50 publications

Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions

Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutions

The impacts of Covid-19 pandemic on the smooth transition dynamics of stock market index volatilities for the Four Asian Tigers and Japan

Challenging Times for Insurance, Banking and Financial Supervision in Saudi Arabia (KSA)

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