The Impact of Covid-19 on the Financial Performance of Sharia Banking

Abstract

The impact of Covid-19 on the financial performance of Islamic banking. Under the guidance of Dr. Ign Oka Widana, SE, MM. The implementation of the WFH, Social Distancing, Physical Distancing policies, until the implementation of the PSBB had an impact on the rate of economic growth in Indonesia. One of the industrial sectors that has been affected by this pandemic is the banking industry, especially in the Islamic banking system. This condition has the potential to be in a situation where the customer will enter a period of default on the financing that has been made. Bank Indonesia as a bank that maintains stability in the value of the rupiah seeks to mitigate the risk of a crisis in the banking system by providing regulatory stimulus in order to maintain banking system stability in the form of financing relaxation and relief in customer financing installments. The method used in assessing the soundness of a bank in this study is the CAMEL method. This study uses a quantitative descriptive method by making banks listed on the stock exchange as objects of research. The purpose of this study is to see how big the impact of Covid-19 is on the financial performance of Islamic banking. The results of the study show that even though there are differences in the average of several ratios in each bank, Islamic banks are still able to maintain a good level of soundness and financial performance. The purpose of this study is to see how big the impact of Covid-19 is on the financial performance of Islamic banking.