THE EFFECT OF INDONESIAN FINANCIAL SERVICES AUTHORITY STIMULUS DUE TO COVID-19 PANDEMIC TOWARDS INDONESIAN COMMERCIAL BANKS GROUP OF BUSINESS ACTIVITIES (BUKU) 4 CATEGORY

• Main Author: Alysia Salsabila, Bryna
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/61168
• Institution: Institut Teknologi Bandung

The World Health Organization (WHO) announced the coronavirus disease 2019 (Covid-19) outbreak as a global pandemic on March 2020. The world is in serious harm not exclusively to the worldwide healthcare system yet to the world economy. The Covid-19 pandemic has the potential to increase credit risk, especially the micro, small, and medium-sized enterprises (MSME) sector in paying its obligations to banks and non-bank financial industry. Financial Services Authority of Indonesia issued The National Economic Stimulus as a Countercyclical Policy on the Impact of Covid-19 is aimed at encouraging banking performance. This study aims to examine if there is difference in bank efficiency before and during the countercyclical policy. Based on the level of explanation the type of this research is event study. This study is using the non-parametric data envelopment analysis (DEA) method to examine the efficiency score. The approach used in this research is the intermediation approach, which is the function of the bank itself as an intermediary. Where banks collect funds from the community then channel it back to the community who need it in the form of credit or in other forms. Data envelopment analysis (DEA) specified in output-oriented and variable return to scale (VRS) approach will be used in this study. The sample used are Commercial Banks Group of Business Activities (BUKU) 4. The inputs of this research are fixed assets, deposits and operating expenses. Meanwhile the output used are credit/financing, and net interest margin. Then performed the Mann Whitney U-Test to identify if there is any difference. Our findings indicate that there is no significant difference in bank efficiency before and during the implementation of the countercyclical policy.