The Impact of the Countercyclical Capital Buffer (CCyB) Policy on Banking Profitability in ASEAN: Before and During the COVID-19 Pandemic
DOI:
https://doi.org/10.55927/fintech.v3i3.83Keywords:
Countercyclical Capital Buffer, Profitability, ASEAN-5, COVID-19, Banking SectorAbstract
This study investigates the impact of the Countercyclical Capital Buffer (CCyB) policy on banking profitability in ASEAN-5 countries (Indonesia, Malaysia, Singapore, Thailand, and the Philippines) before and during the COVID-19 pandemic. Using dynamic panel data from 24 banks and applying the First Difference GMM Two-Step method, the study finds that the Loan-to-Deposit Ratio (LDR), Gross Domestic Product (GDP), and the CCyB policy positively influence banking profitability. Meanwhile, Non-Performing Loans (NPL), inflation, interest rates, and the COVID-19 pandemic have a negative impact. The findings highlight the importance of macroprudential policy in maintaining financial stability during economic shocks.
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