TECHNICAL EFFICIENCY LEVEL OF ISLAMIC BANK IN INDONESIA
| Main Authors: | Fiafifah, Alfu Laila, Darwanto, Darwanto |
|---|---|
| Format: | Article info application/pdf Journal |
| Bahasa: | eng |
| Terbitan: |
Universitas Negeri Surabaya
, 2019
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| Subjects: | |
| Online Access: |
https://journal.unesa.ac.id/index.php/jie/article/view/4579 https://journal.unesa.ac.id/index.php/jie/article/view/4579/2750 |
Daftar Isi:
- One of the common measurements used to evaluate a companys performance is the efficiency performance which indicates a companys efficiency score in utilizing inputs to produce outputs. This study aims to evaluate the performance of state-owned Indonesian Islamic banks by measuring their technical efficiency along with the determinant factors of their efficiency over the period 2014-2017. In this study, DEA, a non-parametric technique method, is employed to measure the efficiency of four state-owned Indonesia Islamic banks. Another method, Tobit-regression, is used to identify the determinant factors of their efficiency. Four state-owned Indonesian Islamic banks are chosen as the object of this study, namely Bank Syariah Mandiri, BNI Syariah , Bank Rakyat Indonesia Syariah, and BTN Syariah. The results of calculation using DEA methos show that the average efficiency level of all state-owned Indonesian Islamic banks over four consecutive yerars is 100%. It means that all the state-owned Indonesian Islamic banks operating in Indonesia have been able to optimize all their resources and are considered efficient over the period 2014-2017. Tobit-regression model results show that bank size, capitalization, and profitability significantly affect all state-owned Islamic banks efficiency, while bank expenses do not have a significant effect on their efficiency.