Description
|
Banking in Indonesia is divided into Commercial Bank and Rural Bank. Like commercial banks, Rural banks in Indonesia also collect public funds through deposits and can provide loans in the form of credit. Their function is to introduce banking services to the wider community. When the Covid-19 pandemic occurred, rural bank activities in carrying out their duties and functions were slightly hampered due to layoffs, decreased imports, increased prices or inflation and increased customer inability to fulfill their obligations, thus affecting the financial performance of rural banks. Rural banks in Bandung during the pandemic experienced an increase in the number of branch offices in 2021, totaling 52 branch offices, an increase compared to 2020, which only amounted to 46 of the 29 rural banks in Bandung. Therefore, this study will compare financial performance before and during the pandemic at rural banks in Bandung. The research results show that financial performance based on profitability ratios as measured by ROA, solvency ratios as measured by CAR and liquidity ratios as measured by LDR are different before and during the pandemic, while profitability ratios as measured by OER and solvency ratios as measured by NPL are not different before and during the pandemic. (2023-07-27)
|