Summary of Factors Affecting Indonesian Islamic Banking Efficiency in 2014-2022

Abstract

Bank efficiency can be used as a benchmark for bank success in a period. Because of this, there have been many studies related to bank efficiency using various methods and perspectives to review banking in Indonesia. As a growing bank, Islamic Indonesian Banking need to pay attention to these factors. This study aims to summarize what factors were found to influence the technical efficiency of Indonesian banking in the year of 2014-2022 period. For this reason, the method used in this research is a literature study which is presented in a qualitative descriptive manner. The results of this research show There are several factors that influence the level of efficiency of Islamic banking in Indonesia in 2014-2022 period. There are factors that cause efficient and inefficient. Small bank size, and the input is higher than the output, causing the bank to be inefficient. Input resources should be reduced by adjusting the target to become efficient. And The Need for Government and Banking Cooperation to Improve Technology and Digitalization.