Efficiency and stability of Islamic vs. conventional banking models: a meta frontier analysis

Banking plays an important role in business and economic growth. However, since a couple decades ago, there have been issues with efficiency and performance. This paper aims to examine Indonesia’s Islamic banking performance through non-parametric production efficiency analysis before and after the COVID-19 pandemic, 2010–2021. This study differentiated between different dimensions of Indonesia’s Islamic banks (IIB) finance and non-finance aspects, as well as investigated the relationships between these dimensions of finance, including assets, deposits, equity, financing, and income, and non-financial variables, namely employees and offices. Non-parametric analysis, with the input-oriented variable constant return to scale (CRS) and returns to scale (VRS) models as a framework, data envelopment analysis (DEA) is used to calculate the IIB of overall, pure, and scale efficiency. However, the resources of technology IIB management are lacking, as well as macroeconomic and environmental effects. This study found that IIB operational needs to enhance investment in technology beyond the office. This means that the number of offices has a smaller impact on enhancing deposits and revenue. Technology investment has a crucial role in enhancing IIB equity, income, and innovation service. As a result, IIB managers and policymakers must improve their efficiency scores in order to increase competition and innovation. Furthermore, IIB needs to increase and spend their assets and experience to enhance technology, which significantly affects efficiency.

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“…Islamic banks should increase the quality of assets due to the positive effect on their efficiency (Kamarudin et al, 2017). (Parsa, 2022).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Indonesian Islamic banks: A review of the financial state before and after the COVID-19 pandemic

Lantara

Junaidi²,

Rauf

et al. 2022

Banks and Bank Systems

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“…The higher the interest rate that is considered relevant, the greater the difference between the current value and the value to be received in the future. In conventional banks, the application of interest system is identical to the concept of risk transfer and speculative behavior with freedom to invest in various projects without putting an emphasis on the commodity physical existence (Parsa, 2022). According to Karim (2017) such concept is different from Islamic banking system which determine profit and loss sharing mechanism over the use of fund, both for the customers and the banks, and there is such thing as time value of money in Islamic economic concept.…”

Section: Public Bank's Interest Rate Has No Effect On the Amount Of M...mentioning

confidence: 99%

Factors Influencing the Amount of Mudarabah Savings Deposit in Public Sharia Banks

Iswanto

Nurriani

Anwar

2022

IJIBEC

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Penelitian ini bertujuan untuk mengetahui pengaruh tingkat suku bunga bank umum, nilai tukar rupiah, bagi hasil deposito Bank Umum Syariah dan jumlah Kantor Cabang Pembantu (KCP) terhadap jumlah simpanan deposito mudharabah pada Bank Umum Syariah di Indonesia. Pendekatan dalam penelitian ini adalah kuantitatif asosiatif yang menggunakan metode Analisis Regresi Linier Berganda dengan pengujian sampel yang digunakan berasal dari 12 bank yang berada di Indonesia berdasarkan laporan bulanan Bank Umum Syariah mencakup tahun 2017 hingga 2021. Hasil penelitian menunjukkan bahwa, tingkat suku bunga bank umum tidak berpengaruh secara parsial terhadap jumlah simpanan deposito mudharabah bank umum syariah, nilai tukar rupiah, bagi hasil deposito dan jumlah Kantor Cabang Pembantu (KCP) berpengaruh secara parsial terhadap jumlah simpanan deposito mudharabah Bank Umum Syariah, tingkat suku bunga bank umum, nilai tukar rupiah, bagi hasil deposito Bank Umum Syariah dan jumlah Kantor Cabang Pembantu (KCP) berpengaruh secara simultan terhadap jumlah simpanan deposito mudharabah pada Bank Umum Syariah.

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“…Studi ini mengukur efisiensi dan stabilitas BSI pasca penggabungan PT Bank Syariah Mandiri dan PT Bank BNI Syariah ke PT BRISyariah, Tbk., pada tanggal 1 Februari 2021. Penelitian terkait efisiensi perlu dilakukan untuk membuktikan bahwa penggabungan tersebut mengarah pada perbaikan teknologi perbankan syariah yang secara empiris tidak setara dengan standar industri dan efisiensinya tidak berbeda secara signifikan dengan bank konvensional (Parsa, 2020) dan juga rasio modal yang sangat tinggi dapat memiliki efek negatif pada efisiensi dan profitabilitas (Bitar et al, 2018). Demikian juga dengan tingkat stabilitas BSI yang berpotensi mengonfirmasi temuan bahwa tingkat kapitalisasi berhubungan negatif dengan risiko yang diukur dengan Z-score (Tan & Floros, 2013).…”

Section: Pendahuluanunclassified

Apakah bank syariah indonesia semakin efisien dan stabil setelah merger?

Maulida

Misbahuddin

Gafur

2022

INOVASI: Jurnal Ekonomi, Keuangan dan Manajemen

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AbstrakPenelitian ini bertujuan untuk mendeskripsikan efisiensi dan stabilitas PT Bank Syariah Indonesia, Tbk. (BSI) setelah penggabungan dari tiga bank syariah milik pemerintah Indonesia. Pendiskripsian melalui metode uji beda dengan t-Test Paired Two Sample for Means pada efisiensi dan stabilitas sembilan periode sebelum merger dan sembilan periode setelah merger. Pengukuran efisiensi berdasarkan pada pendekatan data envelopment analysis (DEA), sementara pengukuran stabilitas berdasarkan pada Z-score. Hasil pengujian menunjukkan bahwa efisiensi dan stabilitas BSI setelah merger semakin baik secara signifikan dibandingkan efisiensi dan stabilitas tiga bank syariah (PT BRISyariah, Tbk., PT Bank Syariah Mandiri, dan PT Bank BNI Syariah). Penelitian ini merekomendasikan peningkatan efisiensi dan stabilitas BSI melalui peningkatan konsentrasi pasar berbasis teknologi dan menghindari diversifikasi pendapatan yang menjadi salah satu penyebab instabilitas bank setelah merger. Kata kunci: Efisiensi; stabilitas; merger Are Indonesian Islamic banks more efficient and stable after the merger?

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Efficiency and stability of Islamic vs. conventional banking models: a meta frontier analysis

Cited by 20 publications

References 57 publications

Indonesian Islamic banks: A review of the financial state before and after the COVID-19 pandemic

Indonesian Islamic banks: A review of the financial state before and after the COVID-19 pandemic

Factors Influencing the Amount of Mudarabah Savings Deposit in Public Sharia Banks

Apakah bank syariah indonesia semakin efisien dan stabil setelah merger?

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