Banking stability plays an important role as an intermediary in the economy. Both the economy and the banking sector affect each other. This study aims to investigate the effect and response of external variables and internal bank variables on Non-Performing Loans at Conventional Commercial Banks and Non-Performing Financing at Islamic Commercial Banks. This study uses macroeconomic variables such as economic growth and inflation, while a bank’s internal variables include the Loan to Deposit Ratio, Financing to Deposit Ratio, and Capital Buffer. This study employs Vector Autoregressive Regression (VAR) to examine the time series data. The results showed that the variable Economic Growth at lag-1, Loan to Deposit Ratio at lag-1, and Capital Buffer at lag-2 significantly affect Non-Performing Loans. While the variable that has a significant effect on Non-Performing Financing is only Economic Growth at lag-1. In addition, as can be seen from the Impulse Response Function curve, Non-Performing Financing tends to be more stable toward shocks from the variables used than Non-Performing Loans. The findings suggest that banks are encouraged to be more selective in loan disbursement and maintain minimal capital adequacy by taking into account the principle of prudence and referring to the bank’s health criteria.

This study aims to analyze the influence of the tourism industry on PDRB in 35 districts/cities of Central Java during the 2020–2021 COVID-19 pandemic era. Secondary data is obtained from the Central Statistics Agency (BPS). The independent variables used are the number of tourist attractions, the number of domestic tourists, the number of foreign tourists, the number of restaurants, and the number of hotels and other accommodations. The dependent variable is the regional income of the tourism sector. The research method used is panel data regression with a fixed-effect model. The study results partially show that the variable number of tourist attractions and the number of hotels and other accommodations positively and significantly affect GRDP. The variable number of restaurants and the number of foreign tourists negatively and significantly affect GRDP. At the same time, domestic tourists have no significant effect on GRDP. Simultaneously, the variables of the number of tourist attractions, the number of domestic tourists, the number of foreign tourists, the number of restaurants, and the number of hotels and other accommodations affect the GRDP. Strenuous efforts are needed for the tourism industry to restore tourism performance to be more optimal in contributing to the economy.