The differences of bank efficiency, risk, and performance before and during the Covid-19 in Indonesia
List of Authors
  • Adi Ariyawati , Andrie Mustikawati

Keyword
  • Bank, financial intermediation, efficiency, risk, performance

Abstract
  • This study aims to analyze the differences in efficiency, risk, and performance between small and big banks before and during the Covid-19 pandemic. Commercial banks included in KBMI 1 are classified as small banks, and commercial banks included in KBMI 2, 3, and 4 are classified as big banks. This study used a sample of 23 small banks and 23 big banks with research periods from the second quarter of 2018 to the first quarter of 2020 (before the Covid-19 pandemic) and the second quarter of 2020 to the first quarter of 2022 (during the Covid-19 pandemic). BOPO proxy as bank operational efficiency, LDR proxy as liquidity risk, and Gross NPL proxy as credit risk. In addition to banking performance indicators, the authors use ROA, ROE, and NIM proxies. Data analysis methods used descriptive statistical analysis and non-parametric tests with the Mann Whitney-U test method with a significance level of 5% because the normality and homogeneity tests were not fulfilled. The results showed significant differences in the variables BOPO, Gross NPL, LDR, ROA, ROE, and NIM between big and small banks before and during the Covid-19 pandemic.

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