Digitalization and Efficiency: Technology-based Service of Indonesia Sharia Commercial Banks (original) (raw)
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The efficiencies related to business activities and needed for competitive advantage. An efficiency bank is important for its capability in mobilizing public funds or channelling funds to people who need business capital. The study tests the effect of the relationship between efficiency on the performance of Sharia banking in Indonesia. The research type is descriptive. The research object is the financial statements of 11 Sharia banks in Indonesia. The data analysis method used is Data Envelopment Analysis (DEA), ratio analysis, and panel data. The results showed that based on the DEA analysis, the overall average of Sharia banks reached an efficiency of 95.1% and the bank's efficiency impacts to NIM but contras finding on ROA. It implicates that sharia banking should be able to manage time, funds, costs as best as possible as well as avoiding risks and interests for optimizing profit.
Efficiency of Islamic Banks in Indonesia: Data Envelopment Analysis
International Journal of Economics, Management and Accounting, 2017
This paper measures the efficiency of Islamic commercial banks in Indonesia by analyzing factors that affect the level of efficiency using the two-stage data envelopment analysis (DEA) method. The objects of this study are 10 Islamic commercial banks in Indonesia which are analyzed from 2011 to 2014. Two methods are used in this study, namely nonparametric method of DEA in the first stage and Tobit model in the second stage. The actual average efficiency of Islamic commercial banks in Indonesia is at fairly good level with an average score 91.82, which means that although relatively inefficient, Islamic commercial banks in Indonesia are able to optimize their resource inputs to produce outputs as an intermediary institution. The application of the Tobit model uses asset (ASSET), non-performing financing (NPF), capital adequacy ratio (CAR), number of bank branches (BRANCH) and return on asset (ROA) as the explanatory variables. The results showed that the variables of assets, number ...
Analysis of Efficiency and Productivity of Sharia Commercial Banks in Indonesia
https://www.ijrrjournal.com/IJRR\_Vol.6\_Issue.7\_July2019/Abstract\_IJRR0061.html, 2019
This study aims to analyze the efficiency and productivity of Sharia commercial banks in Indonesia. Efficiency and productivity analysis using the nonparametric Data Envelopment Analysis (DEA) method based on the intermediation approach assuming Constant Return to Scale (CRS). The results of the analysis of 12 Sharia commercial banks in Indonesia during 2014-2017 showed that the average efficiency level of Sharia commercial banks increased initially by 82.4% in 2014 to 84.9% in 2015, then to 90.1% in 2016, then to 99.6% in 2017. The trend of increasing efficiency however is not directly proportional to the trend of increasing productivity. Productivity of Sharia commercial banks in 2014-2015 increased by 8.5%, and continued in 2015-2016 at 14.1%, but decreased in 2016-2017 by 8%. On average, the productivity of Sharia commercial banks in Indonesia during 2014-2017 was still low at 4.4% originating from an increase in technical efficiency of 7.2% and a decrease in technological change by 2.6%.
Analysis Efficiency of Sharia Commercial Banks in Indonesia
International Journal of Scientific Research in Science, Engineering and Technology, 2021
Indonesia has the potential to become a leader in the development of the Islamic financial market in the world with majority population is Muslim. The Corona Virus Disease 2019 (Covid-19) pandemic has caused decrease in economic growth. However, the distribution of financing by Islamic banks in 2020 increased. With the current progress of the Islamic banking institution in Indonesia, it is necessary to estimation the efficiency level of Islamic banks and the impact of technology on the efficiency of Islamic banks. This research will analyze the efficiency from sharia commercial bank and the effect of internal factors and technology on efficiency. This research will used annual data from sharia commercial bank in 2014 to 2020. To analyze of efficiency will be used Data Envelopment Analysis (DEA) method and used Tobit method to analyze the effect of internal factors and technology on efficiency. In general, the efficiency of sharia commercial bank in Indonesia has a fluctuative tren in 2014-2020. The estimation results of tobit method is return on assets (ROA) has significantly contributing positive effects to efficiency. Meanwhile, technology has significantly contributing negative effect to efficiency.
Efficiency of Islamic Banks Using Data Envelopment Analysis (DEA) in Indonesia, 2007-2010
International Journal of Academic Research in Economics and Management Sciences, 2014
The purpose of this study is to analyze the efficiency level of Islamic Banks (Bank Muamalat Indonesia, Bank SyariahMandiri, Bank Mega Syariah) in Indonesia through the input-output variables that correspond to the economic theory of the years 2007-2010, using the method of Data Envelopment Analysis (DEA). There are five important variables in this research that the input variables of bank is operating costs (I 1), labor costs (I 2) and banking services (I 3), while the output variables is total deposits(O 1) and deposits (O 2).
AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 2012
The purpose of this study is to compare the efficiency of Islamic banks and conventional banks under loan base approach and income base approach. Also, it aims to investigate the economies of scales for both banking streams. Further, we investigated the effect of banks specific factors on efficiency, like size of banks, total liabilities of banks, total profit of banks, total markup revenue, total non-markup revenue, total markup expenses and total non-markup expenses. The data for this study was taken from banking statistics of Pakistan for the year 2001 to 2008. For the measurement of efficiency, data envelopment analysis (DEA) was used. For the effect of banks specific factors on efficiency Tobit regression model was used. The finding suggested that, the Islamic banks overall technical efficiency was better than conventional banks under loan base approach. Further, the result showed that Islamic banks had pure technical inefficiency than conventional banks but Islamic banks has high scale efficiency than conventional banks. Under income base approach conventional banks are efficient than Islamic banks. Islamic banks inefficiency was due to pure technical inefficiency. On the other hand only total markup expenses, total liability and ownership has significant impact on overall technical efficiency score under loan base approach. And total liability, total profit and ownership have significant impact on the overall technical efficiency under income base approach. This study is different from other studies in respect that it compares the efficiency of Islamic banks with conventional banks with these variables and under these two different approaches.
2021
Banking sector mediation is related to efficiency in economic performance. As a financial institution, banks need to maintain their performance in order to operate optimally, one factor that must be considered is efficiency in performance. This research aimed to analyze the efficiency of Islamic Banks and Conventional Commercial Bank in Indonesia. Using a purposive sample technique for two Islamic banks and two commercial banks. Fixed assets, deposits, and other operating expenses as input variablesused, while credit as output variable. Using Data Envelopment Analysis to calculate the efficiency of banking. The results show that all Sharia Commercial Bank samples reached efficiency level 1 was efficient. Besides, the sample of conventional commercial banks used in this study is not all efficient. This is due to one of the sample banks having an efficiency level below one, which is 0.644. It means that conventional bank groups are inefficient.
Islamic Banking : Banking Efficiency Analysis in Indonesia
2016
Banking sector has an important role for the Indonesian economy. Indonesia implementsthe dualbanking system, conventional banks and Islamic banks. It provides an excellent opportunity for the growth of Islamic banking industry in Indonesia. Islamic banking industry in Indonesia has improved in number of banks and branches but the performance of Islamic banks has decreased in recent years. In addition, Islamic banking still provides a lower rate of return than conventional banking. This study aims to measure the efficiency of Islamic banking in Indonesia using the intermediation approach and input orientation. The results showed that Islamic Banks (BUS) and Islamic Business Units (UUS) in Indonesia have not been operating efficiently based on Data Envelopment Analysis (DEA) method. The estimation results of data panel regression model showed total financing and CAR have positive and significant impact, whereas the deposits have negative and significant impact to the efficiency of BUS...
Measuring efficiency of Islamic Banks: evidence from Indonesia
JURNAL EKONOMI DAN KEUANGAN ISLAM, 2018
The present study investigates the efficiency of Islamic banks in Indonesia particularly for the period of 2014-2015. To meet that objective, the data envelopment analysis (DEA) particularly input-oriented, variable return to scale (VRS) has been employed. Additionally, twelve full-fledge Islamic commercial banks are included as the sample of the study. Having analysed using the DEA model, we find the average technical efficiency score of Islamic banks in 2014 is 0.843. In this regard, the inefficiency of Islamic banks is attributed equally to pure technical efficiency and scale efficiency. Moreover, the average technical efficiency score of Islamic banks for the year of 2015 is 0.832 which is lower than the previous year. The inefficiency of Islamic banks in 2015 is mainly contributed by the scale inefficiency. Moreover, the results reveal a declining productivity of Islamic banks during the period of study. Abstrak Penelitian ini menguji efisiensi Bank Syariah di Indonesia selama periode tahun 2014-2015. Untuk mencapai tujuan tersebut digunakan data envelopment analysis (DEA) kususnya input-oriented, dengan menggunakan variable return to scale (VRS). Sample yang digunakan adalah 12 bank syariah. Dengan menggunakan model analisis DEA, penulis menemukan nilai efisiensi teknis rata-rata di tahun 2014 sebesar 0.843. dalam hal ini, ketidakefisienan bank syariah dikaitkan dengan efisiensi teknis murni dan efisiensi skala. Apalagi skor efisiensi teknis rata-rata bank syariah untuk tahun 2015 adalah 0,832 yang lebih rendah dari tahun sebelumnya. Inefisiensi bank syariah pada tahun 2015 terutama disumbang oleh skala inefisiensi. Selain itu, hasilnya menunjukkan penurunan produktivitas bank syariah selama periode penelitian.
Measuring the Competitiveness of Islamic Banking in Indonesian Dual Banking System
2008
Islamic banks in many countries have emerged as important component of financial system that contributes to the growth and development of the country’s economy. They have proven to be a viable and competitive component of the overall financial system. In the dual banking system, Islamic banks have to be competitive to survive. One of the key to competitiveness is efficiency. This study will measure and compare the efficiency of Islamic and conventional banks in Indonesia using Data Envelopment Analysis (DEA) methodology. DEA is a non-parametric, deterministic methodology for determining the relative efficiency and managerial performance, based on the empirical data on chosen inputs and outputs of a number of decision making units. DEA allows us to compare the relative efficiency of banks by determining the efficient banks as benchmarks and by measuring the inefficiencies in input combinations (slack variables) in other banks relative to the benchmark. Intermediation approach will be...