ISLAMIC BANKING EFFICIENCY IN INDONESIA; TWO-STAGE DATA ENVELOPMENT ANALYSIS APPROACH

Muizzuddin, Muizzuddin and Isnurhadi, Isnurhadi (2013) ISLAMIC BANKING EFFICIENCY IN INDONESIA; TWO-STAGE DATA ENVELOPMENT ANALYSIS APPROACH. In: 8th International Conference on Business and Management Research, 7-8 November 2013, Seoul, South Korea.

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Abstract

The purpose of this study is to evaluate the performance of Islamic banks in Indonesia during a period of 2007-2011. To measure the performance, Two-stage Data Envelopment Analysis (DEA) is used. The first step of this method is measuring efficiency performance of Islamic banks using Data Envelopment Analysis (DEA) method and then, the second step estimating factors affecting the efficiency performance using Tobit regression model. Based on the measurement of DEA method, the highest efficiency reached in 2007, and then there is improvement in efficiency as well based on technical, on scale and on overall efficiency from 2010 to 2011 i.e., 96.86% in technical efficiency in 2007, 96.69% in 2008, 94.43% in 2009, 93.32% in 2010 and 93.72% at 2011. Furthermore, the second stage of the test uses Tobit regression method. The result shows that Size has negative impact on performance whilst cost has positive impact. In addition, the coefficient of CAR and ROA are positive significant, whilst NIM and NPF show positive signs but not significant.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: islamic banks, technical efficiency, data envelopment analysys, tobit regression
Subjects: H Social Sciences > HG Finance > HG1-9999 Finance
Divisions: 01-Faculty of Economics > 61201-Management (S1)
Depositing User: backup admin
Date Deposited: 24 Jan 2020 06:57
Last Modified: 24 Jan 2020 06:57
URI: http://repository.unsri.ac.id/id/eprint/25178

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