IMPACT OF THE COVID-19 PANDEMIC ON INDONESIA'S BANKING SECTOR: A COMPARATIVE STUDY OF KBMI 4 BANKS

• Main Author: Sebastian Marten, Juan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86773
• Institution: Institut Teknologi Bandung

The 2020s opened with the unprecedented global disruption caused by the Coronavirus disease 2019 (COVID-19) pandemic, affecting every aspect of life worldwide. The Indonesian banking sector, intertwined with diverse industries, faced direct and indirect impacts. This study investigates the repercussions of the COVID-19 pandemic (2020-2021 period) on the financial performance of Kelompok Bank berdasarkan Modal Inti 4 - KBMI 4 banks. The goal of this research is more than just to investigate differences in financial performance discrepancies between before and during Covid period but also the macroeconomic factors that might explain it. This research found that there are apparent differences in the KBMI 4 banks’ financial performance compared to their historical performance. There is also evidence of macroeconomic factors, especially consumer confidence, that positively and negatively correlates with the banks’ financial performance.