Effect of Macroprudential Policy on Banks’ Profitability in ASEAN
Before and During Covid-19

Effect of Macroprudential Policy on Banks’ Profitability in ASEAN
Before and During Covid-19

ASEAN, Banking, Macroprudential policy, Profitability.

Regulators introduced macroprudential policies to ensure financial stability, but during the Covid-19
pandemic, many countries relaxed these policies to boost credit growth and the economy. This
research examines the impact of these policies on bank profitability in six ASEAN countries from 2018
to 2021 using panel data regression. Before the pandemic, tightening policies like capital buffers, taxes,
liquidity requirements, and foreign exchange limits reduced bank profitability. During the pandemic,
loosening loan loss provisions and loan-to-value ratios increased profitability, while relaxing reserve
requirements decreased it.

Wina Febrianti Tarigan, Dwi Nastiti Danarsari

https://jurnal.unmer.ac.id/index.php/jkdp/

Department of Management, Faculty Economics and Business, Universitas Indonesia

2023-06-19

Fajar Bagus W

PDF

English