COVID-19 PANDEMIC; IMPACT ON NET INTEREST MARGIN OF INDONESIAN BANKING INDUSTRY

Hidayat, Ariodillah and Liliana, Liliana and Gustriani, Gustriani and SHODROKOVA, XENANEIRA and HAKIM, MUHAMMAD NUR (2024) COVID-19 PANDEMIC; IMPACT ON NET INTEREST MARGIN OF INDONESIAN BANKING INDUSTRY. SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS, 8 (1). pp. 23-44. ISSN 2581-2904

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Abstract

This study explores the factors that affect the net interest margin (NIM) in the Bank Modal Indonesia Group. Using data from January 2021 to March 2022 and the Error Correction Model, a short-term negative correlation between BOPO and LDR and NIM in KBMI 1 and a long-term positive correlation with BI Rate was found. Meanwhile, KBMI 2 shows a short-term negative correlation between inflation and LDR and NIM. In addition, KBMI 3 showed a short-term negative correlation with Covid-19, LDR, and BOPO with NIM. On the other hand, KBMI 4 experienced the negative impact of BOPO, Covid-19, and LDR on NIM both in the short and long term. This review emphasizes the importance of managing operational costs and lending for NIM stability in the short term and highlights the significant influence of Bank Indonesia's benchmark interest rate policy on NIM in the long term, requiring careful adjustments to prevent excessive fluctuations.

Item Type:	Article
Uncontrolled Keywords:	Banking Industry, Covid-19 pandemic, Loan to Deposit Ratio, Net Interest Margin, Operational Costs to Operating Income.
Subjects:	H Social Sciences > HG Finance > HG1501-3550 Banking
Divisions:	01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User:	ariodillah hidayat ario hidayat
Date Deposited:	19 Jun 2025 05:13
Last Modified:	19 Jun 2025 05:13
URI:	http://repository.unsri.ac.id/id/eprint/175573

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