Antecedents of Social Funds’ Productivity of Islamic Banks in Indonesia

Andriyani, Lilik; Usman, Nurodin; Pambuko, Zulfikar Bagus

doi:10.18510/hssr.2020.8256

Cited by 5 publications

(6 citation statements)

References 22 publications

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“…However, this promise cannot be fully realized because BPRS continue to confront numerous restrictions, including overlapping institutional features, a lack of management resources, and a shortage of capital in Microfinance Institutions. The researcher proposed solutions to institutional efforts to reinforce the Microfinance Institutions Act and the government's commitment to linking small and medium-sized businesses to microfinance institution development (Andriyani et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Do Technology Changes Affect The Productivity of The Indonesian Islamic Rural Bank (BPRS)?

Aam¹,

As-Salafiyah²

2022

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The Islamic financial industry in Indonesia is currently a global concern, one of which is bank financial institutions, so measuring productivity is essential for Islamic rural banks (BPRS) in Indonesia. This study tries to analyze the BCC model as a basic model to see the level of productivity in a BPRS using the Malmquist productivity index, both in terms of changes in efficiency and changes in technology. The results obtained from the Malmquist index score or total productivity change (TFPCH) show that, in general, BPRS has experienced a decline in productivity but has increased in the last two years. However, there are six BPRS out of 16 BPRS that get an average score of more than one and show an increase in productivity. The BPRS with the highest productivity level score is PT BPD East Kalimantan and North Kalimantan, and the BPRS with the lowest productivity level score is PT BPD Central Java (UUS). However, East Java still has not reached the optimal level of productivity, with a score of 0.803. Overall, the priority factor that needs to be improved in BPRS is the rate of change in technological innovation. This research shows that BPRS needs to implement digitalization.

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Section: Literature Reviewmentioning

confidence: 99%

Do Technology Changes Affect The Productivity of The Indonesian Islamic Rural Bank (BPRS)?

Aam¹,

As-Salafiyah²

2022

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“…Using MPI analysis, Kamarudin et al [40,42] evidenced the change of efficiency in total productivity during 2006-2014 in selected SEA Islamic banks. Meanwhile, Andriyani et al [5] investigated the social funds' productivity of Indonesian Islamic banks. Based on the findings, Islamic banks' productivity of social funds elucidated progress from 2012 to 2018 was contributed by technological change and operational efficiency.…”

Section: Efficiency and Productivity Of Sea Islamic Banksmentioning

confidence: 99%

The efficiency of Islamic Banks in the Southeast Asia (SEA) Region

Chowdhury

Haron

2021

Futur Bus J

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The Islamic banking sector has become a crucial part of the global banking industry. Despite the Islamic banking industry’s encouraging growth in the Southeast Asia (SEA) region, prior studies mostly focused on Islamic banks’ efficiency in the individual country. To fill the literature gap, this study aims to measure the efficiency and productivity growth of Islamic banks in the SEA region. This study adopted the DEA technique and the Malmquist productivity index to evaluate 31 Islamic banks’ performance in SEA from 2014 to 2019. The results evidenced an improvement in efficiency and progress in productivity for the banks in the region. The findings documented better efficiency and gradual progress in productivity for Islamic banks in Indonesia, consistent efficiency for Malaysia, a significant improvement for Brunei; hence, both Thailand and the Philippines Islamic bank depicted a drop-in efficiency for 2019. The findings trigger bank managers to acknowledge the inefficiencies and their sources. Investors and policymakers may find the findings useful in observing the banks’ performance; thus, taking effective mechanism and policies to promote competent and sustainable SEA Islamic banks in the long run.

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“…Currently, Malaysia is the leading Islamic financial market, valued at more than USD 412 billion, and the market share of Islamic financial assets reached 40% in 2020. These Muslim populations are likely to become the future primary market for Islamic finance (Andriyani, Usman, & Pambuko, 2020).…”

Section: Literature Review 21 Overviewmentioning

confidence: 99%

Advancement and Setback in Islamic Banking Productivity in Asean: Do Technological Changes Matter?

Rusydiana¹,

As-Salafiyah²

2021

JIMF

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This study applies the Banker, Charnes and Cooper (BCC) model as a basic approach to the data envelopment analysis used to measure the level of productivity of 24 Islamic banks in four ASEAN countries (Indonesia, Malaysia, Brunei Darussalam and Thailand) over the 2010-2019 period. The Malmquist index was also employed, which is intended to accommodate improvements in efficiency, together with advancementsin technology. According to the Malmquist index scores on total factor productivity (TFP) change, 17 of the 24 Islamic banks (or 70.8 percent) achieved an improvement in productivity over the research period, with Thailand recording the highest productivity level increase. Overall, the most productive Islamic bank was Affin Islamic Bank Berhad. Finally, it was observed that there was a productivity growth in the last two years of the period, namely 2017-2018 and 2018-2019. The productivity change was driven more by efficiency than by technology, implying that Islamic banks in ASEAN countries must improve this aspect.

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Antecedents of Social Funds’ Productivity of Islamic Banks in Indonesia

Cited by 5 publications

References 22 publications

Do Technology Changes Affect The Productivity of The Indonesian Islamic Rural Bank (BPRS)?

Do Technology Changes Affect The Productivity of The Indonesian Islamic Rural Bank (BPRS)?

The efficiency of Islamic Banks in the Southeast Asia (SEA) Region

Advancement and Setback in Islamic Banking Productivity in Asean: Do Technological Changes Matter?

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