The Impact of Pandemic, Implementation of New Normal on Non-Performing-Credit & Profitability Bank Group IV

Abstract

The Covid-19 pandemic has had a great impact on the economy, especially the banking sector. One of the effects of the pandemic on the banking sector is an increase in bad loans and a decline in operational efficiency. The aim of this study was to compare the NPL ratio (NPL) and bank profitability (ROA) in Indonesia before and after the COVID-19 pandemic and the new normal. The study covered banking operations within banking groups under Core Capital (KBMI) IV, with an observation period of 2019-2021. The analytical method uses descriptive statistical analysis, the Shapiro-Wilk Test, and the One-Way ANOVA Test. The purpose of this study is to compare non-performing loans and profitability due to the impact of the pandemic and the new normal on banking at KBMI IV. The results of this study are: there are differences in NPL and ROA before the COVID-19 pandemic; there was no difference in NPL and ROA during the COVID-19 pandemic, and there was no difference in NPL with ROA in the new normal. Banking at KBMI IV tends to be stable in the face of the COVID-19 pandemic. However, we never know whether there will be other pandemics or other macro conditions that will affect banking performance in the future. Therefore, hopely that banks at KBMI IV will improve their performance, be more up-to-date in fintech, further strengthen the capital side, and expand cooperation with other parties both nationally and internationally.