DOES CREDIT PERFORMANCE CHANGE IN THE POSTCOVID- 19? EVIDENCE FROM JAVA ISLAND, INDONESIA

Abstract

This paper examines the impact of the COVID-19 pandemic on credit performance of banks in Java. We have used monthly panel data from January 2016 to December 2020 of the Java region. We find that the credit performance declines during the pandemic amid the economic downturn compared to the pre-COVID-19 period. Overall, ourfindings suggest that the delivery of credit types has been affected except working capital. Likewise, the credit for the main economic sectors is significantly influenced by the pandemic.