Determinan Tingkat Efisiensi Perbankan Syariah Di Indonesia: Two Stages Data Envelopment Analysis

Abstract

Efficiency is an important indicator to observe the banks’ ability in resisting and facing the tight rivalry at banking industry. The study aims to evaluate the efficiency and to analyze the determinants of efficiency of Islamic bank in Indonesia on 2010 – 2013 with Two-Stage Data Envelopment Analysis approach. The objects of the study are 11 Islamic banks (BUS). The first phase of testing uses the Data Envelopment Analysis (DEA) method showed that the efficiency of Islamic bank is inefficient on managing the resources and small Islamic banks are more efficient than the larger. The second phase of testing uses Tobit model showed that Capital Adequacy Ratio (CAR), Return on Asset (ROA), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), and Net Interest Margin (NIM) have positive significant effect on the efficiency of Islamic banks, while Good Corporate Governance (GCG) has a negative significant effect. Moreover, the macroeconomic variables, such as GDP growth and inflation have no significant effect on efficiency of Islamic banks. It suggests that to realize the optimum level of Islamic banks’ efficiency is only related with bank-specific, while the volatility of macroeconomics condition contributes nothing

The Determinant of Banking Efficiency (Data Envelopment Analysis Based on Intermediation Approach)

“…Garza-García (2012) and Andries (2010) found the negative effect of NPL on the bank efficiency. This is not in line with Jaelani (2015) and Pambuko (2016) who found that NPL has the positive effect on the efficiency level. Adjei-Frimpong et al (2014) in his research found that NPL has no effects on efficiency.…”

“…ROA reflects the bank managing ability to produce the profits by using the finance assets provided efficiently (Jaelani, 2015), so that there is a positive relationship between ROA and efficiency. Adjei-Frimpong et al (2014), Hassan and Sanchez (2007), and Pambuko (2016) found the positive relationship between ROA and efficiency. Different from the above research, Muljawan et al (2014) found that ROA has no significant impact on efficiency.…”

“…CAR shows the bank security level. Pambuko (2016) in his research found that CAR has the positive effect on efficiency; the greater the bank financing ability is in taking risks, the more efficient the bank will be. It is in line with the findings of Pancurova and Lyocsa (2013) and Akmal and Saleem (2008).…”

“…The banking efficiency analysis based on DEA method will find clearer description about any factor causing a bank inefficient. A bank is called efficient if it is able to produce more output with the same input or able to use less input than another bank with the same output (Pambuko, 2016). Berger and Master (1997) stated that the banking industrial efficiency can be seen from the micro or micro point of view.…”

“…Jaelani (2015) stated that the higher the ratio of LDR is, the more efficient the process of finance intermediation will be provided by the bank. Pambuko (2016), Sufian dan Kamarudin (2016), Muljawan, Hafidz, Astuti, and Oktapiani (2014), and Jaelani (2015) showed that LDR has positive effects on the bank efficiency.…”