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International Journal of Research in Business and Social Science ; 11(6):300-306, 2022.
Article in English | ProQuest Central | ID: covidwho-2067464

ABSTRACT

Economists, academics, and practitioners are worried that the COVID-19 pandemic has a negative impact on the banking industry in the world, especially in Indonesia, such as other events that have occurred in the world in the last 25 years, namely the Asian Financial Crisis in 1997, Severe Acute Respiratory Syndrome (SARS) in 2003, and the Global Financial Crisis in 2008 (Overby et al., 2004;Hill and Shiraishi, 2007;Winoto and Bustaman, 2020). Rahmi and Sumirat (2021) used commercial banks for their research data and stated that the COVID-19 pandemic has a negative effect on ROA. [...]this research was conducted, studies examining the impact of the COVID-19 pandemic on the performance of rural banks in Indonesia had never been done. [...]this study proposes several research hypotheses as follows: H1: the COVID-19 pandemic has a negative effect on CAR H2: the COVID-19 pandemic has a positive effect on NPL H3: the COVID-19 pandemic has a negative effect on ROA H4: the COVID-19 pandemic has a negative effect on CR Research and Methodology Data and sample The sample selection used the purposive sampling method by selecting rural banks that had complete data, selecting rural banks operating before the COVID-19 pandemic occurred and were still operating until this research was conducted, and selecting rural banks from the largest bank size to the smallest.

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