The Case of COVID-19 impact on the level of non-performing loans of conventional commercial banks in Indonesia

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This study aims to investigate the impact of COVID-19 on the increase in bad credits at conventional commercial banks in Indonesia. The data used in this study are secondary data sourced from the Ministry of Health and from the Financial Services Authority (OJK), each of which consists of 50 data samples. The data analysis technique used in this study is simple regression analysis to determine the magnitude of the influence of COVID-19 on non-performing loans. The results of the data analysis show that COVID-19 has a significant effect on non-performing loans, and the COVID-19 variable can be used as an external indicator of the increase in non-performing loans for commercial banks in Indonesia. The implication of the research is that other researchers can make COVID-19 an external indicator of an emergency beyond human ability that can affect the level of non-performing loans. For banking, this study can be used as a reference when considering credit risk management policy during the COVID-19 pandemic.

Acknowledgment
The researchers are grateful to University of Sultan Ageng Tirtayasa for financial support. In addition, the authors sincerely apologize for the errors and mistakes found in this paper.

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    • Figure 1. Data normality test
    • Table 1. Purposive sampling
    • Table 2. Descriptive statistics
    • Table 3. Validity test results
    • Table 4. SPSS simple regression output results
    • Conceptualization
      Siti Epa Hardiyanti
    • Data curation
      Siti Epa Hardiyanti
    • Investigation
      Siti Epa Hardiyanti
    • Methodology
      Siti Epa Hardiyanti
    • Software
      Siti Epa Hardiyanti
    • Supervision
      Siti Epa Hardiyanti
    • Writing – original draft
      Siti Epa Hardiyanti
    • Writing – review & editing
      Siti Epa Hardiyanti
    • Formal Analysis
      Lukmanul Hakim Aziz
    • Funding acquisition
      Lukmanul Hakim Aziz
    • Project administration
      Lukmanul Hakim Aziz
    • Resources
      Lukmanul Hakim Aziz
    • Validation
      Lukmanul Hakim Aziz
    • Visualization
      Lukmanul Hakim Aziz