Islamic Commercial Banks and Sharia Business Units; How Efficient Are They?
Keywords: Data Envelopment Analysis, Efficiency, Islamic Commercial Banks, Sharia Business Units, Size effect
Abstract
The purpose of this study is to determine the efficiency level of Islamic commercial banks and Sharia Business Units for the period of 2012-2017 and to examine the existence of size effect in bank efficiency. Using Data Envelopment Analysis (DEA) method, this research employs total assets, deposits, and operating costs as the inputs, while the output is total financing and operating income. The samples are 11 Islamic commercial Banks and 20 Sharia Business Units. Results of this study show that Islamic commercial banks are more efficient than Sharia Business Units during the period of analysis and large Islamic commercial banks are more efficient than small sharia business units which provide evidence of size effect existence in bank efficiency. Thus, the policymaker needs to consider bank size in policy formulation regarding bank efficiency.
Downloads
References
Akbar, R. A. (2010). Analisis Efisiensi Baitul Mal Wa Tamwil Dengan Menggunakan Data Envelopment Analysis (DEA). thesis, Universitas Diponegoro.
Ascarya & D. Yumanita. (2005). Bank Syariah: Gambaran Umum. Pusat Pendidikan Dan Studi Kebanksentralan (PPSK) Bank Indonesia.
Basuki, A. T. & N. P. (2016). Analisis Regresi Dalam Penelitian Ekonomi & Bisnis: Dilengkapi Analisis SPSS & Eviews. In Rajawali Press.
Cooper, W. W., et al. (2006). Introduction to Data Envelopment Analysis and Its Uses With DEA-Solver Software and References, Springer.
Daniati, N. & S. (2006). Pengaruh kandungan Informasi Komponen Laporan Arus Kas, Laba Kotor, Size Perusahaan terhadap Expected Return Saham. Simposium Nasional Akuntansi IX.
Hidayah, N. & D. P. (2014). Tingkat efisisensi perbankan konvensional dan perbankan syariah di Indonesia. Seminar Nasional Dan Call for Paper: Research Methods and Organizational Studies Universitas Muhammadiyah Surakarta.
Rivai, V. (2007). Bank and Financial Institution Management. In PT Raja Grafindo Persada.
Saeed, S., et al. (2013). Examining Efficiency of Islamic and Conventional Banks in Pakistan: Using Data Envelopment Analysis. Global Journal of Management and Business Research Finance, 13 (10).
Solé, J. (2007). Introducing Islamic banks into conventional banking systems. IMF Working Paper, International Monetary Fund, 7.
Sutawijaya, A. & E. P. L. (2009). Efisiensi Teknik Perbankan Indonesia Paskakrisi Ekonomi: Buah Studi Empiris Penerapan Model DEA. Jurnal Ekonomi Pembanguan, 10 (1), 49–67.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.