Abstract:
his study aims to analyze the effect of Environmental, Social, and Governance (ESG),
asset quality, and bank performance on bank lending in Indonesia post the COVID-19
period (2020–2023). The study employs secondary data consisting of financial
statements for the period 2020–2023 and sustainability indexes obtained from ESG
rating agencies. The variables used include ESG, asset quality (measured by NPL),
bank performance (measured by ROA), and bank lending (measured by LDR). The
analysis was conducted using Panel Data Regression with the Fixed Effect Model
(FEM). The findings reveal that ESG and asset quality each have a positive and
significant influence on bank lending, while bank performance does not significantly
affect bank lending. However, when tested simultaneously, ESG, asset quality, and
bank performance together have a significant influence on bank lending in Indonesia.
