Financial performance analysis of conventional rural credit banks during and after covid-19 pandemic
Case study in indonesia
Keywords:
Conventional Bank, Financial Performance, Indonesia, Influence, Covid-19Abstract
This study examines the financial performance of Conventional Rural Banks (BPRs) in Indonesia during the Covid-19 and post-Covid-19 periods (2020–2024), using a case study of institutions operating in the DKI Jakarta and Banten Provinces. The research focuses on analyzing the impact of key financial ratios—Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), Operating Costs to Operating Income (BOPO), and Net Interest Margin (NIM)—on Return on Assets (ROA) as a measure of profitability. The findings reveal that LDR and NIM have a positive and significant effect on ROA, highlighting the importance of credit distribution efficiency and productive asset management in enhancing financial performance. Conversely, NPL and BOPO negatively and significantly affect ROA, underscoring the detrimental impact of credit risk and operational inefficiency. Furthermore, the study identifies a significant difference in ROA performance between the Covid-19 and post-pandemic periods, indicating shifting financial dynamics in response to macroeconomic recovery. These insights offer valuable guidance for BPR management in formulating strategic decisions to strengthen financial resilience and profitability amid evolving economic conditions.
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