Impact of the Covid-19 Pandemic on Performance of Rural Banks in Central Java – Indonesia

Abstract

This study aims to analyze the impact of the COVID-19 pandemic on the performance of conventional rural banks in Central Java. The data used in this study is panel data from 175 companies for 4 years (2018 to 2021). The data is in the form of rural bank financial reports obtained by downloading from the Financial Services Authority (FSA) website. Data analysis was carried out descriptively and inferentially. Inferential analysis was used to test the proposed hypothesis, namely the paired sample t-test. The results of this study indicate that Covid-19 has a significant negative impact on rural bank performance, namely reducing Return On Assets (ROA) and Loan to Deposit Ratio (LDR) and increasing Non Performing Loans (NPL).