Efficiency of Islamic Banks Using Data Envelopment Analysis (DEA) in Indonesia, 2007-2010 (original) (raw)
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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.
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 ...
ISLAMICONOMIC: Jurnal Ekonomi Islam
This study aims to measure the level of performance efficiency of Islamic banks in Indonesia and Saudi Arabia from 2018 to 2020; and Analyzing improvement targets that can be carried out by Islamic banks in Indonesia and Saudi Arabia to achieve optimum performance using the Data Envelopment Analysis (DEA) method. Data analysis was carried out using the MaxDEA program version 8.2. The sampling technique in this study was done by purposive sampling. The object of this research is the 4 largest Islamic banks in each country. Input and Output Variable data are obtained from financial reports from 2018 - 2020. The results show that the average efficiency value of Indonesian Islamic Banks is higher than the average efficiency of Saudi Arabian Islamic Banks in the 2018 and 2019 periods. using both the CRS and VRS models. As for the 2020 period, the opposite applies where the average efficiency value of Saudi Arabian Islamic Banks outperforms Indonesian Islamic Banks with the same two measu...
IAEME, 2019
The Analysis of Conventional Commercial Bank Efficiency in Indonesia using Data Envelopment Analysis (DEA) Method as Banking Performance Consideration. Financial institution, bank and non bank, has become one of the most important aspects in the economy of a country, considering bank as financial institution that has an important role as intermediary between the parties with excessive funds and those who need the funds. To apply the principle of sound banking, bank efficiency rating becomes crucial. It is because efficiency represents the performance of a bank as well as factor that must be considered by a bank to act rationally to minimize the risk faced in its operational activities. This study aims to measure the relative efficiency of conventional commercial banks in Indonesia using Data Envelopment Analysis (DEA) methodology based on intermediation approach. Samples of this study are five major banks in Indonesia, namely Mandiri, BRI, BNI, BCA and BTN. DEA is a non-parametric, deterministic methodology for determining the relative efficiency and managerial performance, based on the empirical data of preselected inputs and outputs of decision making units. DEA allows us to compare the relative efficiency of conventional commercial banks by determining the efficient banks as benchmarks for the inefficient ones with input combinations in other banks relative to the benchmarks.
Efficiency of Islamic Banks Using Two Stage Approach of Data Envelopment Analysis
Buletin Ekonomi Moneter dan Perbankan, 2014
The aim of this study is to measure the efficiency of Islamic Bank in Indonesia, to analyze the factors that affect the level of efficiency which is known as Two-Stage Data Envelopment Analysis method and to propose measurement of Bank Soundness with modified CAMELS. The objects of this study are 10 (ten) Islamic Bank (BUS) in Indonesia which analyzes from the second Quarter of 2010 until the fourth Quarter of 2012. There are 2 (two) methods which are used in this study, namely non-parametric method of Data Envelopment Analysis (DEA) on the first stage and Tobit model on the second stage. In addition, this study will illustrate the formulation of the financial factors of CAELS instead of CAMEL by integrating the results of efficiency level measurement using DEA in CAELS formulation. Overall, the results, show that the efficiency level of Islamic banks in Indonesia during the time period in this study, have not yet reach the optimum level of efficiency. In addition, modification of C...
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.
Journal of Economics and Behavioral Studies
The purpose of this paper is to analyse the efficiency of Islamic banks in Malaysia using both the standard approach and the alternative approach to Data Envelopment Analysis (DEA). The standard approach relies on linear averages of outputs and inputs to measure efficiency whereas the alternative approach uses nonlinear averages. Both approaches are tested on 14 Islamic banks in Malaysia for the three-year period, 2008 to 2010. Our overall results for the three years suggest that, the inefficiency level among these banks using the standard approach (SDEA) is much higher than using the alternative approach (ADEA). Implications and future research are also discussed.
Jurnal Organisasi dan Manajemen, 2021
This research has the purpose to measure efficiency and analyze the efficiency comparison between Sharia Commercial Bank (BUS) and Sharia Bussines Unit (UUS) in Indonesia and compare the efficiency during the period 2008-2013. There are 10 Islamic banks which are used as samples of this research consisting of 3 Sharia Commercial Bank (BUS) and 7 Sharia Business Unit (UUS) that were chosen by purposive sampling. Efficiency measurements in this research using Data Envelopment Analysis (DEA). To determine differences in efficiency between Sharia Commercial Bank (BUS) and Sharia Bussines Unit (UUS), this study uses a different test parametric independent sample t-test. The result of this research showed that there is no significant difference between the efficiency of Sharia Commercial Bank (BUS) and Sharia Bussines Unit (UUS), during the period of 2008-2013 with possible intervention t value (-0.429) < t table (2.002) and probability value =0.000.
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.
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...