An Exploratory Study on the Resilience of the Indonesian Banking Sector Post Pandemic Using a Dynamic Generalised Method of Moments Conducted on Time-Series Financial Data of Major Banks

Indonesia is helming the Group of 20 (G20) presidency for the very first time. A key initiative as announced in the presidential address is the post-pandemic economic recovery. The nation has the largest nominal gross domestic product (GDP) among the 10 nations of Southeast Asia. The research aims to assess the financial resilience of the Indonesian banking sector and its capability to recover post-pandemic. Using the dynamic generalised methods of moment (GMM) conducted on the financial data (2008-2019) of the major banks in Indonesia, the analysis identifies the determinants of financial resilience and the strength of the resilience. The banking sector is a beacon of the economic health of a nation. The 20 largest banks by asset size and market capitalisation of Southeast Asia have sizeable operations in Indonesia. Therefore, the research not only provides insights into Indonesia’s economic well-being but also proffers a glimpse of the strength of post-pandemic recovery of the region