Measuring The Efficiency of Indonesian Sharia Rural Banks: Two Stage Approach

Nugrohowati, Rindang Nuri Isnaini

doi:10.23917/jep.v20i1.6692

Cited by 4 publications

(10 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…When CAR increases, either because of higher capital or because of lower-risk assets, the potential for achieving efficiency will also be higher. Similar results regarding the CAR ratio which has a positive effect on efficiency are also revealed in the research of Nugrohowati (2019), Pambuko (2016), Devi and Firmansyah (2020), and Halim and Oswari (2020).…”

Section: Introductionsupporting

confidence: 83%

“…However, it is different from the research conducted by Nugrohowati (2019) and Suwignyo and Musdholifah (2019) which stated that the ROA ratio hurts the level of efficiency. Then Soetanto and Ricky's research (2011) explains that the negative effect of the ROA ratio is due to the returns obtained by banks in Indonesia do not come from their role as intermediary institutions, but come from other activities such as placements with Indonesian banks, investments in financial markets, and credit for consumption.…”

Section: Introductioncontrasting

confidence: 70%

“…The same thing was also expressed by Fatmawati and Aji (2018) and Pambuko (2016), it is assumed that with bank credit restrictions it becomes more efficient, but the possibility of a high level of bad loans. Meanwhile, it is different from the research conducted by Firdaus and Hosen (2013) and Nugrohowati (2019) which stated that NPF caused by problem financing had an effect on bank efficiency and hurt the level of efficiency.…”

Section: Introductioncontrasting

confidence: 64%

“…In a similar study conducted by Nugrohowati (2019) and Khairunnisa and Khasanah (2018), the NPF ratio hurts the level of efficiency but does not have a significant effect. The high NPF is due to two things, namely the increasing problem financing or the decreasing total financing.…”

Section: Profitabilitymentioning

confidence: 83%

“…A high NPF ratio will threaten bank capital, because of its function as a risk absorber. However, if the high NPF is caused by low total financing due to reduced credit demand and reduced credit disbursement, the NPF is considered to have no significant effect on efficiency (Nugrohowati, 2019) Suwigno dan Musdholifah (2019) menjelaskan bahwa semakin tinggi pembiayaan yang yang disalurkan sejalan dengan peningkatan pada laba yang diterima. Dari perolehan laba tersebut bank akan mampu mengelola sumberdaya hingga mencapai titik optimalnya sehingga kinerja bank syariah menjadi semakin baik dan akibatnya tingkat efisiensi bank syariah akan meningkat pula.…”

Section: Profitabilityunclassified

See 4 more Smart Citations

Efficiency of Islamic Rural Banks Using Two-Stage Data Envelopment Analysis Approach

Rahmawati

Nurasyiah²,

Cakhyaneu³

2023

Ekspansi

View full text Add to dashboard Cite

Islamic rural bank is required to operate effectively and efficiently in order to achieve maximum profit levels by minimizing costs incurred. West Java as one of the provinces with the highest number of rural banks must pay more attention to the level of efficiency in order to continue to develop and compete with other banking institutions. This study aims to determine the level of efficiency and the factors that affect the level of efficiency. The samples that will be used are 27 islamic rural bank in West Java. The results showed that during 2018 to 2021 the efficiency level of islamic rural bank in West Java was included in the category of still very likely to be optimized to be efficient. Inefficiency is caused by the lack of optimal utilization of third-party funds so that the level of output obtained is also less than optimal. Then the NPF ratio and KPMM has a negative and significant effect on the level of islamic rural bank efficiency, while the ROA ratio has a significant effect on the positive direction and the FDR ratio does not have a significant effect on the level of islamic rural bank efficiency in West Java. The implications of this study show that the efficiency of Islamic rural bank is closely related to the management and allocation of funds, especially third party funds and other assets as owned resources to operate.

show abstract

Section: Introductionsupporting

confidence: 83%

Section: Introductioncontrasting

confidence: 70%

Section: Introductioncontrasting

confidence: 64%

Section: Profitabilitymentioning

confidence: 83%

Section: Profitabilityunclassified

See 3 more Smart Citations

Efficiency of Islamic Rural Banks Using Two-Stage Data Envelopment Analysis Approach

Rahmawati

Nurasyiah²,

Cakhyaneu³

2023

Ekspansi

View full text Add to dashboard Cite

show abstract

Efficiency Analysis of Gold Pawn in Islamic Commercial Banks in Indonesia

Haidar,

Hendrasto,

Herindar

2023

Khatulistiwa

View full text Add to dashboard Cite

The purpose of this study is to examine the efficiency of the Islamic banking business in Indonesia, specially Islamic Rural Bank in Central Javas. As a component of Indonesia's Islamic banking ecosystem, it is critical to understand the extent those banks work optimally together to support the development of Islamic finance, particularly during the Covid-19 pandemic, and to realize public welfare, particularly through productive financing consistent with Sustainable Development Goals Objectives. In the periode of 2016 until 2020, this study examined a sample of 20 Islamic Rural Banks in central Java. The study was conducted using a non-parametric approach known as DEA (Data Envelopment Analysis). The intermediation strategy was used to determine the input and output variables in this study. Fixed assets, operational costs, and third-party money are included as input variables. Meanwhile, the output variable is made up of the quantity of finance granted and the amount of operating income earned. The findings of this study reveal that the efficiency of Islamic Rural Bank in Central Java has a shifting tendency across the 2016–2020 timeframe, with the average bank experiencing a decline in efficiency during the COVID-19 pandemic. Additionally, this study assesses the possibility for improvement of inefficient programs using input and output data. The primary source of inefficiency is in the output variable, particularly in terms of customer financing. Additionally, this research makes recommendations to a variety of stakeholders, including practitioners, academics, and regulators.

show abstract

Untitled

2023

JEI

View full text Add to dashboard Cite

The objective of this study is to examine the efficiency, performance, and scope for enhancement of Rural Banks (BPRs) and Sharia Rural Banks (BPRSs) in Indonesia, particularly in the context of the Covid-19 pandemic, in order to support national economic recovery. The research sample consisted of 77 BPRs and 52 BPRSs in Indonesia over the period of 2016-2020. The analytical approach employed was a non-parametric method called Data Envelopment Analysis (DEA), utilizing secondary data obtained from financial bank statements. The input variables encompassed fixed assets, operational costs, and third-party funds, while the output variables included the amount of financing provided and operating income. The findings of the study reveal a fluctuating trend in the performance of BPRs and BPRSs in Indonesia from year to year. According to the CRS and VRS scores, the efficiency level of BPRs remained stable during the Covid-19 pandemic, whereas BPRSs experienced a decline in efficiency. Consequently, this study concludes that BPRs exhibit superior efficiency compared to BPRSs in Indonesia. Moreover, the analysis of potential improvements indicates that the most significant source of inefficiency lies within the output variables: financing and operating income. Furthermore, benchmarking analysis reveals that the efficiency of both BPRs and BPRSs was higher during the period of 2016-2019 compared to 2020.

show abstract

Measuring The Efficiency of Indonesian Sharia Rural Banks: Two Stage Approach

Cited by 4 publications

References 11 publications

Efficiency of Islamic Rural Banks Using Two-Stage Data Envelopment Analysis Approach

Efficiency of Islamic Rural Banks Using Two-Stage Data Envelopment Analysis Approach

Efficiency Analysis of Gold Pawn in Islamic Commercial Banks in Indonesia

Untitled

Contact Info

Product

Resources

About