Key Financial Performance Comparative Analysis of Conventional Rural  Banks and Islamic Rural Banks in Indonesia during the Covid-19 Pandemi

Ken Paramita Aryana; Lucky Nugroho; Yananto Mihadi Putra

Authors

Ken Paramita Aryana
Lucky Nugroho Universitas Mercu Buana, Indonesia http://orcid.org/0000-0002-9613-1667
Yananto Mihadi Putra http://orcid.org/0000-0002-9174-8000

Keywords:

Conventional Rural Bank, Islamic Rural Bank, Key Financial Indicators

Abstract

During the Covid-19 pandemic, all industrial sectors including banking experienced a slowdown. Therefore, this article aims to analyze the key financial indicators of Conventional Rural Bank (CRB) and Islamic Rural Bank (IRB) during the Covid-19 pandemic. The key financial indicators include Capital Adequacy Ratio (CAR), Return on Asset (ROA), Operating Expense Ratio (OER), NonPerforming Loan/Finance (NPL/NPF), and Loan/Finance Deposit Ratio (LDR/FDR). The method used in this research is comparative descriptive statistics with the observation period of January 2019 to December 2020. Based on the results of the study, during the Covid19 pandemic, the OER ratio in CRB and IRB also decreased due to a slowdown in operating income which was contracted due to the Covid-19 pandemic. Both CBR and SBR experienced an increase in credit/financing risk and non-performing loan/financing (NPL/NPF) during the Covid-19 pandemic. As well as the LDR ratio in the CRB and FDR in the IRB has decreased its ability to meet the demand for credit/financing by using total assets owned. The performance of CRB from the aspect of capital adequacy (CAR) is better than IRB. However, IRB has better the effectiveness of using its assets to generate income which is shown in the ROA ratio that higher than CRB. IRB can be more resilient to crises because it can adapt to situations and is more flexible. Islamic finance does not recognize interest, so it can survive interest rates that fluctuate.

Author Biography

Lucky Nugroho, Universitas Mercu Buana

Scopus Author ID : 57195053205

Google Scholar ID : 3y2RA8UAAAAJ

Sinta ID : 5975167

References

Almilia, L. S., & Herdinigtyas, W. (2005). Analisis Rasio CAMEL Terhadap Prediksi Kondisi Bermasalah Pada Lembaga Perbankan Periode 2000-2002. Jurnal Akuntansi Dan Keuangan Petra, Vol. 7 No. https://doi.org/https://doi.org/10.9744/jak.7.2.pp.%20131-147

Arafah, W., & Nugroho, L. (2016). Maqhashid Sharia in Clean Water Financing Business Model at Islamic Bank. International Journal of Business and Management Invention, 5(2), 22–32.

Peraturan Bank Indonesia No. 6/17/PBI/2014 tentang Bank Perkreditan Rakyat Berdasarkan Prinsip Syariah, (2014).

BPS. (2021). Berita Resmi Statistik : Profil Kemisikinan di Indonesia September 2020. https://www.bps.go.id/pressrelease/2021/02/15/1851/persentase-penduduk-miskin-september-2020-naik-menjadi-10-19-persen.html

Casu, B., Girardone, C., & Molyneux, P. (2015). Introduction to Banking (2nd ed.). Pearson.

Hidayah, N., Nugroho, L., Prihanto, H., & Prihantini, D. (2021). Company Characteristics , Disclosure of Social Responsibility , and Its Impact on Company Performance : An Empirical Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(6), 889–895. https://doi.org/10.13106/jafeb.2021.vol8.no6.0889

Hidayat, A. A. N., & Antara. (2021). Selama Pandemi Kredit BPR Tumbuh 3 Persen, BPR Syariah 12,7 Persen - Bisnis Tempo.co. Bisnis.Tempo.Co.

Ihwanudin, N., Wicaksono, G., Kembauw, E., Suciati, R., Reza, M., Manggabarani, A. S., Sugiri, D., Puspa Indah Arum, L., Rustandi Kartawinata, B., Amien Mastur, A., Nugroho, L., Eprianti, N., & Nugraheni, S. (2020). Dasar-Dasar Analisa Laporan Keuangan. Widina Bhakti Persada Bandung.

Kemenkeu. (2020). Skema Pemulihan Ekonomi Nasional (PEN). Kementerian Keuangan Republik Indonesia. https://www.kemenkeu.go.id/media/15323/v922-skema-pemulihan-ekonomi-nasional_media.pdf

KNEKS. (2020). Aksi Lima BLU Atasi Pembiayaan Mikro Syariah. Knks.Go.Id. https://knks.go.id/berita/289/aksi-lima-blu-atasi-pembiayaan-mikro-syariah?category=1

Mishkin, F. S. (2016). The Economics of Money, Banking, and Financial Markets (11th ed.). Pearson.

Novelino, A. (2021). Sri Mulyani Klaim Keuangan Syariah Lebih Stabil Saat Pandemi. CNN Indonesia.Com.

Nugraha, E., Nugroho, L., Lindra, C., & Sukiati, W. (2020). Maqashid Sharia Implementation in Indonesia and Bahrain. Etikonomi, 19(1), 155–168. https://doi.org/10.15408/etk.v19i1.14655

Nugroho, L., Badawi, A., Nugraha, E., & Putra, Y. M. (2021). What Determines Islamic Performance Ratio of Islamic Banking in Indonesia: An Analysis Using Financing Deposit to Ratio as Moderator. SHARE: Jurnal Ekonomi Dan Keuangan Islam, 10(1), 104–123. https://doi.org/10.22373/share.v10i1.9314

Nugroho, L., & Bararah, H. N. (2018). Pengaruh Good Corporate Governance dan Biaya Operasional dan Pendapatan Operasional (BOPO) terhadap stabilitas keuangan bank umum syariah di Indonesia Tahun 2012-2017. Inovbiz: Jurnal Inovasi Bisnis, 6(2), 160–169.

Nugroho, L., Doktoralina, C. M., Indriawati, F., Safira, S., & Yahaya, S. (2020). Microeconomics and tawhid string relation concept (TSR). International Journal of Economics and Business Administration, 8(3), 293–306. https://doi.org/10.35808/ijeba/516

Nugroho, L., Nugraha, E., & Badawi, A. (2020). The Determinant of Islamic Performance Ratio: Do Financing Deposit Ratio, Financing Quality, and Return on Asset Ratio Matters? Global Review of Islamic Economics and Business, 8(2), 113–122.

Nugroho, L., Utami, W., & Doktoralina, C. M. (2019). Ekosistem Bisnis Wisata Halal dalam Perspektif Maqasid Syariah. Perisai : Islamic Banking and Finance Journal, 3(2), 84–92. https://doi.org/10.21070/perisai.v3i2.1964

Nugroho, L., Utami, W., Doktoralina, C. M., Soekapdjo, S., & Husnadi, T. C. (2017). Islamic Banking Capital Challenges to Increase Business Expansion (Indonesia Cases). International Journal of Commerce and Finance, 3(2), 1–10.

Nugroho, L., Utami, W., Harnovinsah, & Doktorlina, C. M. (2020). Covid-19 and The Potency of Disruption on The Islamic Banking Performance (Indonesia Cases). International Journal of Economic and Business Applied, 1(1), 11–25.

Nugroho, L., Villaroel, W., & Utami, W. (2018). The Challenges of Bad Debt Monitoring Practices in Islamic Micro Banking. European Journal of Islamic Finance, 11, 1–11.

OJK. (2017). Peraturan Otoritas Jasa Keuangan No. 15 /POJK.03/2017. Otoritas Jasa Keuangan.

OJK. (2021a). Laporan Profil Industri Perbankan - Triwulan IV 2020. Otoritas Jasa Keuangan Indonesia. https://www.ojk.go.id/id/kanal/perbankan/data-dan-statistik/laporan-profil-industri-perbankan/Pages/Laporan-Profil-Industri-Perbankan---Triwulan-IV-2020.aspx

OJK. (2021b). Statistik Perbankan Indonesia - Desember 2020. Otoritas Jasa Keuangan Indonesia. https://www.ojk.go.id/id/kanal/perbankan/data-dan-statistik/statistik-perbankan-indonesia/Pages/Statistik-Perbankan-Indonesia---Desember-2020.aspx

Undang-undang No. 10 Tahun 1998 tentang Perubahan Atas Undang-Undang Nomor 7 Tahun 1992 tentang Perbankan, (1998). www.bphn.go.id

Satibi, E., Utami, W., & Nugroho, L. (2018). A Comparison of Sharia Banks and Conventional Banks in Terms of Efficiency, Asset Quality and Stability in Indonesia for the Period 2008-2016. International Journal of Commerce and Finance, 4(May), 134–149.

Soekapdjo, S., Nugroho, L., Badawi, A., & Utami, W. (2018). Bad Debt Issues in Islamic Bank: Macro and Micro Influencing (Indonesia Cases). In International Journal of Commerce and Finance (Vol. 4).

Soekapdjo, S., Tribudhi, D. A., & Nugroho, L. (2019). Pengaruh Fundamental Ekonomi dan Kinerja Keuangan Terhadap Kredit Bermasalah Pada Bank Syariah Di Indonesia. Ekonika : Jurnal Ekonomi Universitas Kadiri, 4(2), 126. https://doi.org/10.30737/ekonika.v4i2.327

Suprapty, R., Witjaksono, A., Nugroho, L., Badawi, A., Susanti, M., Mardanugraha, E., & Ary, W. W. (2021). Perbankan Hasil Pemikiran dari Para Dosen Berbagai Perguruan Tinggi di Indonesia. In Perbankan Hasil Pemikiran dari Para Dosen Berbagai Perguruan Tinggi di Indonesia (Vol. 1, Issue 1).