scholarly journals THE EFFICIENCY OF BANKS IN INDONESIA: SHARIA VS. CONVENTIONAL BANKS

2016 ◽  
Vol 18 (3) ◽  
pp. 307-332
Author(s):  
Mokhamad Anwar
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Bank Capital ◽  
Tobit Regression ◽  
Small Business Finance ◽  
Conventional Banks

This paper evaluates the performance of Indonesian banking sector, focusing on technical efficiency of sharia and conventional banks along with the determinants of its efficiency during the period 2002-2010. Data Envelopment Analysis is employed to estimate banks technical efficiency and Tobit-regression is used to reveal the determinants of the efficiency over the panel data of 116 banks, including 109 conventional banks and 7 sharia banks. The result shows that sharia banks outperformed conventional banks in one model when it takes into account small business finance (SBF) as one of the output components in the model. Sharia banks have higher average SBF portfolio than those of conventional banks’ portfolio. The result indicates the efforts of Indonesian sharia banks to obey one of the principles in Islamic banking, “the emphasis on Islamic principles of morality”. By observing all models, it is concluded that the size of the bank, capital adequacy and liquidity are of banks characteristic factors which are very important to increase banks’ efficiency

scholarly journals The Efficiency Performance of Global Islamic Banks

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Norlina Kadri ◽  
Rossazana Abdul Rahim ◽  
Dyg Siti Zahrah Abg. Abdillah
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
Scale Efficiency ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Technical Inefficiency ◽  
Efficiency Performance ◽  
Dea Approach

This paper examines the efficiency performance of the Islamic banks that consist of 14 countries namely Bahrain, Bangladesh, Iran, Jordan, Kuwait, Lebanon, Malaysia, Pakistan, Qatar, Saudi, Tunisia, Turkey, UAE, and Yemen during the period of 2004-2011 with 44 Islamic banks involved. The efficiency estimates of individual banks are evaluated using the Data Envelopment Analysis (DEA) approach. The empirical findings suggest that during the period of study, pure technical efficiency outweighs scale efficiency in the global Islamic banking sector implying that the Islamic banks have been managerially efficient in exploiting their resources to the fullest extent. The empirical findings seem to suggest that the global Islamic banks have exhibited high pure technical efficiency. During the period of study it is found that pure technical efficiency has greater influence in determining the total technical inefficiency of the Global Islamic banking sectors.

Analisis Efisiensi Teknis Multi-Stage Menggunakan Data Envelopment Analysis (DEA) dan Regresi Tobit pada Usahatani Bawang Merah, Studi Kasus di Desa Torongrejo, Kecamatan Junrejo, Kota Batu, Jawa Timur

2021 ◽  
Vol 5 (4) ◽  
pp. 1191-1205
Author(s):  
Ryan Winarso ◽  
◽  
Syafrial Syafrial ◽  
Wiwit Widyawati
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Production Efficiency ◽  
Formal Education ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Factors Affecting ◽  
Profitability Analysis ◽  
Production Value

Shallot has the highest production value in Indonesia. High production value indicates that shallot is an important commodity, therefore, its potential must be improved. Technical efficiency analysis can be used to measure production efficiency and possible input reduction to maximize the production potential of shallot. The chosen location for this research is Torongrejo Village Batu City, East Java. Shallot productivity value of Batu City is comparable to other central shallot production areas in East Java. The purpose of this research is to understand the farming system and production efficiency of shallot alongside with socio-economics factors affecting its efficiency level. Research method used in this research consists of: profitability analysis of shallot farming, analysis using Data Envelopment Analysis (DEA) to analyze the technical efficiency of shallot production, and Tobit regression to analyze socio-economics factors affecting technical efficiency level. The results from the analyses shows that shallot farming in Torongrejo Village has the R/C ratio of 2,09, with the DEA-CRS technical qfficiency value of 87,7 percent, DEA-VRS technical efficiency value of 99 percent and scale efficiency value of 88,6 percent. The result from Tobit regression using DEA-VRS as dependent variable shows that farming experience and formal education has positive and significant effect on technical efficiency (TE) level, and land ownership status has negative and significant effect on TE level. Shallot production efficiency can be increased by using reduced inputs therefore able to increase farming profit while keep improving farmers’ education and agriculture extension programs for the next generation of farmers.

scholarly journals The Efficiency of Islamic Banks and Conventional Banks in Indonesia Using Data Envelopment Analysis Approach

2021 ◽  
Vol 58 (1) ◽  
pp. 375-381
Author(s):  
Retno Fitrianti, Sri Undai Nurbayani
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Financial Institution ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Sample Technique ◽  
Using Data ◽  
Conventional Banks

Banking sector mediation is related to efficiency in economic performance. As a financial institution, banks need to maintain their performance in order to operate optimally, one factor that must be considered is efficiency in performance. This research aimed to analyze the efficiency of Islamic Banks and Conventional Commercial Bank in Indonesia. Using a purposive sample technique for two Islamic banks and two commercial banks. Fixed assets, deposits, and other operating expenses as input variablesused, while credit as output variable.  Using Data Envelopment Analysis to calculate the efficiency of banking. The results show that all Sharia Commercial Bank samples reached efficiency level 1 was efficient. Besides, the sample of conventional commercial banks used in this study is not all efficient. This is due to one of the sample banks having an efficiency level below one, which is 0.644. It means that conventional bank groups are inefficient.

scholarly journals An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

2020 ◽  
Vol 54 (1) ◽  
pp. 77
Author(s):  
Anna Pyka
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Linear Form ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Dea Model ◽  
The Impact ◽  
Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

scholarly journals Effects of Macroeconomics Factors toward Efficiency in Banking

JEJAK ◽  
2018 ◽  
Vol 11 (2) ◽  
pp. 390-400 ◽  
Author(s):  
Faaza Fakhrunnas ◽  
Faiza Husnayeni Nahar ◽  
Hilman Fikri Albana
Keyword(s):  
Data Envelopment Analysis ◽  
Interest Rate ◽  
Growth And Development ◽  
Financial Statement ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Bank Efficiency ◽  
Macroeconomic Factors ◽  
Conventional Banks

The main objective of this study is to analyze the effect of macroeconomic factors toward efficiency in Islamic and Conventional Banking. Banking as one of components in financial system that highly contributes to the growth and development of the economy in a country, especially after establishment of the first Islamic bank in Indonesia at the year of 1992. Afterwards, Islamic banking began to develop and start to compete with conventional banking. Hence, in order to survive and do fair competitiveness, Islamic and Conventional banking have to maintain its efficiency. This study uses the methodology of Data Envelopment Analysis (DEA). This study also analyze the macroeconomics factors namely inflation, interest rate of Bank indonesia and the growth of Gross Domestic Product (GDP) which affects the bank efficiency. Our data is obtained from annual financial statement published by each islamic and conventional bank and Bank Indonesia starting from 2007 to 2016. This study shows that conventional banks have higher efficiency than Islamic banks, while crisis in 2008 had no significant effect on the efficiency of Islamic and conventional banking. However, a decrease in the level of efficiency that occurs in conventional banking indicates that conventional banking is more sensitive to the crisis.

scholarly journals Measuring Bank Efficiency: Evidence from the Tanzanian Banking Sector

2013 ◽  
Vol 8 (1) ◽  
pp. 1239-1251
Author(s):  
Zawadi Ally ◽  
Dr. G.N. Patel
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Parametric Approach ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Constant Return ◽  
Crs Model

The objective of this study is to measure the efficiency of commercial banks in Tanzania using a non-parametric approach, the input-oriented data envelopment analysis (DEA), both by constant return to scale (CRS) and variable return to scale (VRS). For this purpose, two outputs representing total loans and total interest income, and three inputs representing total deposits, the number of employees and total expenses are selected for seven-years (2006-2012) period in the analysis. The findings under CRS model identify four banks to be fully efficient in the year 2006, two banks in 2007 and one bank in 2008, 2009, 2010, 2011 and 2012, while VRS model results identify five banks to be fully efficient in the year 2006 and 2012, three banks in 2007 and two banks in 2008 and 2009, one bank 2010 and 2011. Four banks, Standard Charted bank, National Commercial Bank (NBC), Citibank and Barclays bank are found to be the most efficiency banks in Tanzania, which serve as the benchmark peers for inefficient banks in the sample, In addition Tobit regression has been used to determine the efficiency drivers.

Technical efficiency: the pathway to credit union cost efficiency in Ghana

2018 ◽  
Vol 44 (11) ◽  
pp. 1292-1310
Author(s):  
Benjamin Amoah ◽  
Kwaku Ohene-Asare ◽  
Godfred Alufar Bokpin ◽  
Anthony Q.Q. Aboagye
Keyword(s):  
Technical Efficiency ◽  
Cost Efficiency ◽  
Banking Sector ◽  
Returns To Scale ◽  
Credit Unions ◽  
Credit Union ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Content Type ◽  
Macroeconomic Conditions

Purpose The purpose of this paper is to investigate the factors that tend to influence credit union efficiency, specifically examining cost efficiency (CE) and technical efficiency. Design/methodology/approach Using a two-stage method, the authors first estimate CE using Tones’ SBM data envelopment analysis method and technical efficiency in a variable returns to scale setting during the period 2008–2014. The authors estimate a mixed-effects and two-limit Tobit regression to examine the effect of credit union specific characteristics, banking industry and macroeconomic conditions, on efficiency. Findings Credit unions’ CE averaged 38.9 percent compared to 54.4 percent for technical efficiency. The authors find that technical efficiency does not translate into CE and vice versa. Practical implications The authors suggest that when targeting CE, credit union managers would have to make technical efficiency a priority. A monopolized and inefficient banking sector does not challenge efficiency improvement in the credit unions industry. Originality/value This study employs data from a frontier market.

scholarly journals Technical Efficiency in Public Hospitals in Kenya: A Two –Stage Data Envelopment Analysis

2018 ◽  
Vol 10 (6) ◽  
pp. 141
Author(s):  
Francis Kimani Mwihia ◽  
James Machoki M’ Imunya ◽  
Germano Mwabu ◽  
Urbanus M. Kioko ◽  
Benson B. A. Estambale
Keyword(s):  
Regression Analysis ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Public Hospitals ◽  
Capital City ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Hospital Variation ◽  
Dea Analysis ◽  
Tobit Regression Analysis

The paper uses the DEA technique to estimate efficiency scores in Kenyan public hospitals and then applies the Tobit regression to study inter-hospital variation in the scores. The DEA analysis reveals that small hospitals are more efficient than large hospitals, with efficiency levels ranging from 74-91% in small DMUs and from 57-78% in large DMUs. Tobit regression analysis shows efficiency scores are negatively correlated with the hospital’s distance from the manager’s residence and from the capital city. Internal and external supervisions are suggested as mechanisms for increasing performance of hospitals.

scholarly journals Efisiensi Teknis Usahatani Kentang di Kabupaten Gowa Sulawesi Selatan

2021 ◽  
Vol 11 (1) ◽  
pp. 65-74
Author(s):  
Ahsanah Mukarromah Arifin ◽  
Anna Fariyanti ◽  
Netti Tinaprilla
Keyword(s):  
Data Analysis ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Purposive Sampling ◽  
South Sulawesi ◽  
Dea Approach

One of the ways to increase production was increasing technical efficiency. The purpose of this research was to analyze technical efficiency and factors that affected technical efficiency in Tinggimoncong District, Gowa Regency, South Sulawesi. This research used purposive sampling with 50 potatoes farmers. This study used Data Envelopment Analysis (DEA) approach and Tobit regression for data analysis. The result of the study showed that there are 23 farmers of the respondents stated to be efficient or about 46 per cent of the total respondents studied. Factors that significantly influence the technical efficiency of potato farming were education and income outside of farming.    

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