Analysis the level of Efficiency of Sharia Commercial Bank and Sharia Business Unit in Indonesia with Data Envelopment Analysis Method

Aziz, Roikhan Mochamad; Amanda, Dita

doi:10.33830/jom.v17i1.834.2021

Cited by 3 publications

(5 citation statements)

References 6 publications

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“…MSMEs are stipulated in the provisions of the Laws and Regulations concerning the facilitation, protection and empowerment of cooperatives and micro, small and medium enterprises, namely having a maximum net worth/capital of 10 billion with a maximum annual sales turnover of 50 billion Bank Indonesia Regulation. Puspitasari et al (2019) concerned amendments to BI regulation, Patandung & Indrawati (2022) concerned the Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Islamic Commercial Banks, and Sharia Business Units (Aziz & Amanda, 2021). Banking financial institutions have an important and moral role in alleviating poverty through MSME financing channelled to the lower middle class.…”

Section: Msmes Financingmentioning

confidence: 99%

Does Sharia Banking have the Capability to Increase Micro, Small and Medium Enterprises Financing?

Yudiansyah

Srinita

Suriani

et al. 2022

IJFEB

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The contribution of Micro, Small, and Medium Enterprises (MSMEs) has played an important role in GDP and employment growth in Indonesia in the last decades, but still, MSMEs have difficulties accessing bank loans. This study examines the effect of internal factors of Islamic banking performance ratio, financing to deposit ratio, capital adequacy ratio, non-performing financing of total financing, and non-performing financing for MSMEs on the development of MSMEs financing in Islamic Banking in Indonesia. It consists of three Islamic Financial Institutions; Islamic Commercial Banking, Islamic Business Unit Bank, and Islamic Rural Banking from January 2015 until December 2021 (monthly base), using secondary data with 252 observations. The regression model used in this research is Generalised Least Squares (GLS), using Panel Data and the random effect model approach. The results of this study showed that all independent variables, financing to deposit ratio, capital adequacy ratio, non-performing financing of total financing, and non-performing loans for MSMEs, have a significant effect on MSMEs’ financing growth. This study indicates that the contribution of the capital adequacy ratio has a significant positive effect on the growth of MSMEs financing. Also, the financing to deposit ratio and non-performing financing from total financing negatively affect MSMEs financing growth. Besides that, the non-performing financing for MSMEs relatively had no strong negative effect on MSMEs financing growth in sharia banking in Indonesia.

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Section: Msmes Financingmentioning

confidence: 99%

Does Sharia Banking have the Capability to Increase Micro, Small and Medium Enterprises Financing?

Yudiansyah

Srinita

Suriani

et al. 2022

IJFEB

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“…Islamic Commercial Banks in Indonesia present financial institutions based on Sharia principles in providing financial products and services (Aziz & Amanda, 2021). Islamic Commercial Banks offer products and services that follow Sharia principles, such as buying and selling, leasing, and profit sharing.…”

Section: Introductionmentioning

confidence: 99%

Working Capital and Investment Financing in the MSME Sector: Impact on the Profitability of Islamic Commercial Banks in Indonesia

Yaman,

Hamizar

2023

JES

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Introduction to The Problem: MSMEs face several conservative challenges, such as financing constraints. This opportunity can be the primary concern of how working capital financing and investment financing in the MSME sector benefit Islamic Commercial Banks.Purpose/Objective Study: This study examines the impact of working capital and investment financing in the MSME sector on Islamic Commercial Banks' profitability in Indonesia.Design/Methodology/Approach: The quantitative research method uses the EViews 10 application. The data used in this study is data on Islamic Commercial Banks in Indonesia from June 2014 - February 2023. Observations were made on 105 time series data observations.Findings: Working capital financing in the MSME sector does not significantly impact the profitability of Islamic Commercial Banks in Indonesia. However, investment financing for the MSME sector has a positive and significant impact on the profitability of Islamic Commercial Banks in Indonesia at a significance level of 1%. Thus, the more investment financing provided to the MSME sector, the higher the profitability level of Islamic Commercial Banks. Therefore, Islamic Commercial Banks in Indonesia should be more focused on providing investment financing to the MSME sector to increase the profitability and growth of Islamic Commercial Banks in Indonesia.Paper Type: Research Article

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“…7/1992, which allows Sharia banks to operate their functions based on profit sharing system (Zaini & Shuib, 2021). Bank Muamalat Indonesia (BMI) was the first Sharia bank established in 1992 in Indonesia (Aziz & Amanda, 2021). However, the development of Sharia banking in Indonesia is much slower than in conventional banks (Aziz & Amanda, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Bank Muamalat Indonesia (BMI) was the first Sharia bank established in 1992 in Indonesia (Aziz & Amanda, 2021). However, the development of Sharia banking in Indonesia is much slower than in conventional banks (Aziz & Amanda, 2021). The conventional banks dominate the Indonesian economy even though Indonesia is the largest Islamic country in Asia and even in the world (Abidin et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, so far, research on business performance, especially in the Syariah banking industry, is still focused on the financial side. At the same time, there is very little research on business performance related to the management strategy (Aziz & Amanda, 2021;Zaini & Shuib, 2021). Besides, the studies on business performance seen from the study of management strategy involve asserted that business performance is influenced by other factors such as Environmental Analysis (Gupta, 2013;Kolios & Read, 2013), value creation (Teti, Perrini, & Tirapelle, 2014), Cost Efficiency (Niţoi & Spulbar, 2015), Financial Risk (Platon, Frone, & Constantinescu, 2014), Board Characteristics (Nomran, Haron, & Hassan, 2018;Titova, 2016), and Funding (Pachter et al, 2007).…”

Section: Introductionmentioning

confidence: 99%

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Strategy to Increase Sharia Banking Performance through Value-added Creation Intellectual

Supriyadi

2022

J. Keuang. dan Perbank.

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Based on the continuous flourishing of Sharia banking all over the globe, the current study aims to examine the impact of various factors on Sharia banking performance. These factors include cost efficiency, financial risks, funding, board characteristics, environmental analysis, and strategic value-added creation intellectual. A quantitative research methodology with a survey technique was employed to collect 421 respondents' data from 33 financial institutions, including 20 Sharia business units and 13 Sharia commercial banks. Descriptive analysis and structural equation modeling were performed in SmartPLS 3.0 software. The findings revealed the significant positive impact of environmental analysis on board characteristics, financial risk, cost efficiency, and funding. Likewise, results revealed the significant impact of board characteristics on financial risks, cost efficiency, funding, and value-added creation intellectual. Strategic value-added creation intellectual was found to positively impact the performance of Sharia banking in Indonesia. Except funding that has a moderate influence on Sharia banking performance, all other variables reflected the strong presence and impact on Sharia banking performance. The current study is novel in the existing body of literature by introducing this strategic value-added creation intellectual as a predictor of Sharia banking performance in Indonesia, along with the impacts of various other factors. Theoretically, the current study adds to the body of literature by providing a comprehensive framework related to the factors that impact Sharia banking performance. Moreover, based on the study results, the banks should keep a fair track of their capital and returns to enhance their performance. Simultaneously, it helps Sharia banks identify the significance of winning the investors' confidence by providing them security and catering to their needs cost-effectively.

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Analysis the level of Efficiency of Sharia Commercial Bank and Sharia Business Unit in Indonesia with Data Envelopment Analysis Method

Cited by 3 publications

References 6 publications

Does Sharia Banking have the Capability to Increase Micro, Small and Medium Enterprises Financing?

Does Sharia Banking have the Capability to Increase Micro, Small and Medium Enterprises Financing?

Working Capital and Investment Financing in the MSME Sector: Impact on the Profitability of Islamic Commercial Banks in Indonesia

Strategy to Increase Sharia Banking Performance through Value-added Creation Intellectual

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