The COVID-19 Pandemic Impact on Banking Sector

The financial performance of the banking sector globally can be seen on the capital markets of each country. One of the important sources of information in the investment business on the capital market is the financial reports that are provided by every company going public. The objectives of this study are (1) to determine the simultaneous and partial effect of liquidity factors, Debt Equity Ratio, company size on timeliness of financial reporting in the banking sector in Indonesia. (2) to determine what factors are dominant in the timeliness of financial reporting in the banking sector in Indonesia. This research uses secondary data with panel data analysis method. The results show the liquidity variable, Debt Equity Ratio and firm size positively influence on timeliness of financial reporting in the banking sector in Indonesia. Firm Size is the dominant factor that has a significant positive effect on the Timelines Financial Report of the banking sector in Indonesia. The findings of this research are that increasing liquidity, Debt Equity Ratio and Firm Size can increase the Timelines Financial Report of the banking sector in Indonesia. Firm Size as the dominant factor is the attraction and driving force for the Timelines Financial Report banking sector in Indonesia. The research can be used as a reference for future researchers on identifying efforts of the influence of Liquidity, Debt to Equity Ratio, Firm Size and Timelines Report.

The banking sector is the area with the most corruption on a global and national scale (ACFE, 2021; ACFE Indonesia Chapter, 2020). The banking sector itself is a sector that is rigid in terms of regulation and places great emphasis on prudential aspects in its business processes. Bahoo (2020) in his paper states that corruption in the banking sector raises considerations for building an anti-corruption architectural system within banks to eradicate corruption. This preliminary study will describe cases of corruption in the banking sector in Indonesia in a limited period of time. This study uses data from court rulings related to banking corruption cases registered in 2020. The overview of corruption cases shows the central tendency related to the profile of fraudsters, the value of state finance loss, court imprisonment, and the modus operandi of fraud/corruption committed by the perpetrators. The findings show that corruption in the banking sector in Indonesia occurs at State-Owned Enterprises and Local Government-Owned in the form of commercial banks, rural banks and sharia rural banks. The data indicates that in terms of gender, the fraudsters, although still dominated by the male gender, are relatively equal with the female gender where ratio of the male and the female is 6:4. Furthermore, the data indicates that in terms of position or rank of the fraudster, the higher the position of the bank’s internal employee, the greater the value of state finance loss incurred. The results of this study also show that the modus operandi of crimes that often occur is borrowing the name of the debtor, fictitious credit, and collusion in applying for credit. The repeated modus operandi is a challenge for policy managers in designing better systems and governance to eliminate the level of corruption in the banking sector. In the future, it is necessary to expand and enrich data collection and data analysis of corruption cases in the banking sector in Indonesia so that it can provide a better picture.

The main purpose – This study aims to examine the influence of audit committee characteristics, reputation of public accounting firms, and the COVID-19 crisis on the Audit Report Lag (ARL) of the banking sector in Indonesia..Method - This study uses annual panel data from 40 banks listed on the Indonesia Stock Exchange for the 2014-2021 period. The analytical method used in this study is the Random Effect Model.Main Findings – The results show that the frequency of audit committee meetings and the reputation of the public accounting firm have a negative effect on the ARL of the banking sector in Indonesia. Meanwhile, the COVID-19 crisis had a positive effect on the ARL of the banking sector in Indonesia. However, the research failed to prove the influence of the size of the audit committee and women's audit committee on the ARL of the banking sector in Indonesia.Theory and Policy Implications – This research contributes to the development of corporate governance literature on the relationship between the characteristics of audit committees and the reputation of public accounting firms and the ARL of the banking sector, in times of crisis such as the COVID-19 pandemic. This research adds insight for bank regulators, investors, and other business people about the factors that affect the ARL of the banking sector in Indonesia, which allows them to control the ARL more effectively.Novelty – This study is one of the first to consider women's audit committees, the reputation of public accountants, and the COVID-19 crisis in relation to the ARL of the banking sector, particularly in Indonesia. Keywords - Audit report lag, audit committee characteristics, public accounting firm reputation, COVID-19 crisis, Indonesian banking sector.

Purpose- This study aims to determine the effect of intellectual capital, which includes Human Capital (HC), Structured Capital (SC), Capital Employed (CE), and innovation on the performance of SOEs in the Banking Sector in Indonesia
 Methodology- This study uses various research and secondary data from journals and books.
 Findings- The findings indicate that Intellectual capital, including Human Capital, Structural Capital and Capital Employed, relates positively to organisational performance in the banking sectors. The results also support the argument that innovation played an important role in organisational performance in the banking sectors.
 Research Implications- This study limits its generalisations since it is limited to the effect of intellectual capital and innovation on the performance of the company (issuer) in SOEs in the Banking Sector.
 Practical Implications- The present study provides insight and knowledge for investors before making financial decisions, such as investment decisions and other investment instruments, to minimise possible risks. This study is expected to be used as a source of information and learning to measure the performance of the company (issuer) and to improve the quality of the company so that it is effective and improves the welfare of the company and its customers. It is hoped that this research can be used as a source of reference and consideration as well as theories for future research.

The social environment is a challenge for the banking industry in Indonesia. The dynamic changes of the social environment influence the strategy and performance in the global competition of the banking sector in Indonesia. The objectives of this study are 1) to analyze the influence of the social environment on generic strategies, 2) to analyze the influence of generic strategies on bank performance, and 3) to analyze the influence of the social environment on the performance of the banking sector. Surveys are conducted on 101 banks through a set of questionnaires, which are given to the bank and collected directly by the researcher as well as by post to the president director and director of the banks in Indonesia. Data that have been collected are analyzed by using descriptive analysis, analysis of variance (ANOVA), and linear structural relationship (LISREL) using structural equation models (SEM). The results of this study show three paths that influence the social environment, generic strategies, and the performance of the banking sector in Indonesia. First, the social environment that consists of public knowledge about banking, lifestyle society and distribution of public income has a significant influence on the generic strategies, which are low cost and focus. Second, low cost generic strategies and focus have a significant influence on the financial and organizational performance, while the social environment that consists of public knowledge about banking, lifestyle society and distribution of public income has a significant influence on the financial and organizational performance. Therefore, it is important for decision makers of the national banking sector to develop a strategy to enhance profitability and competitiveness of banks given the current competition.

Purpose: The primary aim of thşis study was to evaluate difference in the number of patients with tru-cut biopsies to diagnose breast lesions between non-pandemic and pandemic periods. Materials and Methods: In this study, the nonpandemic period and the pandemic period were compared, the periods for the pandemic times, between March 1, 2018, and 29 February 2020, and for the nonpandemic period, 1 March 2020 to 12 March 2022 to 12 March 2022. In each period, we have included all the tru-cut biopsies for suspected breast cancer. During the pandemic and non-pandemic period, the number of tru-cut biopsies BI-RADS and histopathological findings of the patients who experienced tru-cut biopsies were compared. Results: The number of tru-cut biopsies performed during the nonpandemic and pandemic period was similar (1596, 1599). In the pandemic period, tru-cut biopsy histopathologic reports revealed that benign and high-risk cases decreased statistically, while invasive carcinoma cases increased by 1.9 (95% CI 1.6-2.2) times. During the pandemic period, US-guided BI-RADS 3 and BI-RADS 4a cases decreased statistically significantly, BBI-RADS 4b cases increased 1.4 (95% CI 1.1-2.2) times, BI-RADS 4c cases 1.7 (95% CI 1.2-2.2), BI-RADS 5 cases increased 2.1 (95% CI 1.4-3.1) times Conclusion: There was no significant change in tru-cut biopsy numbers compared to the period of the pandemic and the non-pandemic period. However, the stage of the cancers captured during the period of the pandemic was higher.

Audit delay is the length of time for the completion of an audit of a company's financial statements measured from the closing date of the book year to the date of issuance of financial statements. This study aims to analyze the effect of financial distress and leverage on audit delay. In addition, this study also uses company size as a moderating variable, which aims to determine the role of company size in the relationship between financial distress and leverage on audit delay. This research was conducted at the Indonesia Stock Exchange (IDX) through the investment gallery especially in the banking sector in Indonesia in 2014-2018. This study uses secondary data in the form of financial statements of banking companies in 2014-2018. The research sample is quantitative and uses purposive sampling method, with a total sample of 130 samples. The research methodology used is multiple linear regression and Moderated Regression Analysis (MRA) using SPSS version 24. The results of this study are that financial distress has a significant effect on audit delay, leverage has a significant effect on audit delay in the banking sector in the Indonesia Stock Exchange (BEI) year 2014-2018. And company size strengthens the relationship between financial distress and leverage on audit delay in the banking sector on the Indonesia Stock Exchange (IDX) in 2014-2018.

The role of the banking sector is very important for the country's economic system, so it is important for banking institutions to maintain their profitability and efficiency. Currently the banking sector is facing the threat of credit risk indicated by the NPL, where this risk can affect the financial well-being and the role of the banking system. This study aims to examine the effect of bank-specific variables, macroeconomic variables, and industry-specific variables on credit risk as indicated by the NPL level in the Indonesian banking sector. The sample used in this study was 46 banks which were companies listed on the Indonesia Stock Exchange (IDX) during the period 2000 to 2020. The results showed that only bank-specific variables, namely bank capitalization, bank performance, loan growth, and bank diversification, were affect the level of NPL banking sector in Indonesia. Meanwhile other bank specific variables, namely bank size, bank inefficiency, ownership concentration, as well as macroeconomic variables (GDP growth, inflation, public debt, unemployment) and industry specific variables (interbank concentration) do not affect the level of credit risk as indicated by the NPL level of the banking sector in Indonesia.

The capital market is a place for individuals or business entities to carry out investment activities, especially in the banking sector, one of the sectors in the LQ45 stock index which is in great demand by investors in Indonesia. In the capital market, one of the investments that can be made is stock investment, but investors will be faced with uncertainty by fluctuations in stock prices caused by several factors, one of which is macroeconomic factors. Therefore, a predictive analysis of stock prices is needed to prevent uncertainty and minimize losses. Accurate prediction models can use deep learning algorithm methods. In the prediction of stock price movements, the data used is historical data on stock prices which is time series type data. This study conducted stock price predictions using the Bidirectional Long Short-Term Memory (biLSTM) method. biLSTM is another variation of the LSTM model. The object of this study uses the variables open, close, adj close, low, high, volume, value, buying rate, selling rate. The data that has been obtained will be preprocessing. Next build a prediction model using hyperparameter tuning with Genetic Algorithm (GA), train the model and evaluate the model. Data testing was carried out using Root Mean Squared Error (RMSE) and Mean Absolute Percentage Error (MAPE) with 4 data from the banking sector in Indonesia including Bank BRI, Bank BNI, Bank BCA, and Bank Mandiri. Based on the data testing that has been carried out, the results of the biLSTM algorithm can predict stock prices accurately because it has a relatively low RMSE value with a MAPE value below 10%.

PurposeMoney laundering and terrorism financing use the banking sector system illegally and result in enormous losses for the state and nation. Regulatory Technology (RegTech) is an important part of effectively preventing money laundering and terrorism financing. However, the implementation of RegTech related to the prevention of money laundering and terrorist financing, especially in the Indonesian banking sector, has not been widely studied and discussed. Therefore, this study aims to provide empirical testing evidence regarding the effectiveness of RegTech implementation in the Indonesian banking sector to prevent money laundering and terrorist financing.Design/methodology/approachThis study uses primary data obtained through a survey distributed to 160 bankers who work in eight different banks in Indonesia with a 95% confidence level and a confidence interval of 7.75. The criteria needed to determine the sample in this study are individuals who actively work as staff whose work is directly related to banking; individuals who are actively working in banks registered with OJK; individuals who have been actively working in the banking sector in Indonesia for at least three years. The data that has been obtained were analyzed using the SmartPLS application to test the validity and reliability, descriptive statistics and structural models (inner model).FindingsThe results of this study indicate that electronic know your customer (eKYC), transaction monitoring (TM), cost and time efficiencies (CTE) influence the prevention of anti-money laundering (AML) and countering financing of terrorism (CFT) in the Indonesian banking sector. However, eKYC and CTE have little influence on AML-CFT in the Indonesian banking sector. Meanwhile, TM has a moderate influence on AML-CFT in the Indonesian banking sector. In addition, in general, most bankers agree that the bank they work for has followed the guidelines, policies and regulations that have been given.Originality/valueThis study uses the Indonesian banking sector as a research subject that raises the effectiveness of the implementation of the use of RegTech to prevent money laundering and terrorism financing.

This study aims to analyze the factors that influence good corporate governance in the banking sector in Indonesia. These factors are Corporate Culture, Board of Directors, Employee Performance, and Internal Audit as intervening variables. Respondents in this study were employees of Banks, both State-Owned Enterprises (BUMN) and private companies listed on the Indonesia Stock Exchange in 2020. The sample selection method was purposive sampling. Based on the established criteria, 10 banks in the Central Jakarta area were selected as samples. The data were analyzed by bootstrapping using smartPLS 3.0. software package. The results of this study indicate that corporate culture, board of directors, and employee performance have an effect on good corporate governance with internal audit as an intervening variable either partially or simultaneously. has been applied to assess how employee behavior influences the setting of company priorities. Meanwhile, the Board of Directors can improve the quality of company strategies, policies, and continue to carry out company management in accordance with the interests and objectives of the company. Employee performance can pay more attention to controlling behavior so that company management can be carried out openly and able to survive in competition with other companies in order to be able to survive in intense competition and in Good Corporate Governance can focus on basic values, namely paying attention in the physical form and behavior of employees. a company in order to create better company performance.

This study aims to find out and test the market reaction around the announcement date indicated by abnormal returns around the date, to find out and test the market reaction around the announcement date indicated by trading volume activity around the date, and to find out and test the differences in the sample t-test. This research involved 46 banks listed on the Indonesia Stock Exchange. The method of determining the sample used in this study is by using a saturated sample where all members of the population are sampled. This study uses secondary data from the financial statements of banking companies listed on the IDX. Testing the data using the average difference test method. The results of the study show that there is no significant difference in abnormal returns before and after the announcement of the increase in the FED interest rate by the FOMC in the banking sector in Indonesia. Tests on trading volume activity show that there are significant differences in transaction volume before and after the announcement of the increase in the FED interest rate by the FOMC in the banking sector in Indonesia.
 Keywords: Fed Fund Rate; Abnormal Return; Total Volume Activity

This study aims to determine the influence of dividend policies, managerial ownership, and institutional ownership, both partially and simultaneously, on the value of banking sector companies listed on the IDX for the period 2018-2022. Sampling in this study uses a purposive sampling technique. So that research data was obtained as many as 140 data samples. The type of research used is quantitative and analytical observational research design with a cross-sectional approach, which is a study with the aim of analyzing the dynamics of inter-effects and effects, by collecting time-lapse data at a certain time (point time approach). The analysis methods used are multiple linear regression analysis, F test, t test, and determination coefficient (R2). The results of the partial study show that dividend policy has a positive and significant effect on the value of companies in the banking sector in Indonesia, in 2018-2022. Meanwhile, management ownership and institutional ownership have no effect on the value of banking sector companies in Indonesia in 2018-2022. Simultaneously, dividend policies, institutional ownership, and management ownership have a significant effect on the value of companies in the banking sector in Indonesia in 2018-2022. The determination coefficient shows the magnitude of the variation in the dependent variable due to the variation of the independent variable of 11.3% The change in the variation in the company's value is due to the influence of dividend policy, institutional ownership, and management ownership. While the remaining 88.7% was influenced by other variables outside this study. Such as fiscal, monetary, or national political stability in its influence on the rise and fall of the company's value.

This study aims to examine empirically the effect of earnings persistence, good corporate governance, and the accrual component of the quality of earnings in the banking sector in Indonesia. Data analysis was performed using quantitative descriptive methodthat aims to provide an overview of the nature of things that took place at the time the research was done. The study sample consisted of 25 banks listed on the Indonesia Stock Exchange (IDX) with data for a period of 5 years (2011-2015). The results showed that the accrual component of earnings persistence and significant effect on the quality of earnings. The resulting value is significantly smaller than 0.05. While GCG no significant effect on the quality of earnings in the banking sector in Indonesia, where significant value is greater than 0.05. This Study contributes to the existing Earnings Persistence, corporate governance, accrual component and earnings quality literature in emerging markets. In addition, this study offers some useful insights for regulators and policy makers by testing the effect of Banking Indonesia’s reforms on earnings quality

This study aims to analyze and compare the regulation and implementation of biometric data protection in the banking sector in Indonesia and the United States. In addition, this study also evaluates the security risks of biometric data and provides policy recommendations to improve its protection. This study uses a doctrinal method using primary and secondary legal sources. The focus of this study is to examine how the Indonesian State protects biometrics as personal data in a legal context and to compare the regulations and implementation related to biometrics in the banking sector in Indonesia and the United States. Based on the results of the study, in general, it was found that both have regulated the financial services sector, especially banking, and the technical management of personal data of customers and/or prospective customers. However, there are no detailed regulations aimed at protecting the biometrics of banking consumers. The absence of specific regulations on biometric data protection in the banking sector requires banks to take proactive steps in securing customer data, such as strengthening security systems and adopting strict internal policies. In addition, the government needs to consider creating more detailed regulations to provide legal certainty and better protection for consumers.