THE EFFICIENCY OF BANKS IN INDONESIA: SHARIA VS. CONVENTIONAL BANKS
Keywords:
Technical efficiency, sharia banks, conventional banks
Abstract
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
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References
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Aburime, U.T. and Alio, F.(2009). Islamic Banking: Theories, Practices, and Insights for Nigeria. International Review of Business Research Papers Vol 5, No. 1, pp.321-329.
Ariff, M. and Can, L. (2008). Cost and profit efficiency of Chinese banks: A non-parametric analysis. China Economic Review, 19(2): 260-273.
Molyneux, P. (2010). Jinnah, Islamic Banking and the New Financial Architecture. Working Paper, Division of Financial Studies. Bangor Business School, Bangor University, UK.
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Ametefe, F.; Aboagye, A.Q.Q.; and Kuman-koma, E.S. (2011). Housing and Contraction Finance, Deposit Mobilisation, and Bank Performance in Ghana. Journal of Property Research, 28:
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Athanasoglou, P. P.; Brissimis, S.N., and Delis, M.D. (2008). Bank-specific, Industry-specific and Macroeconomic Determinants of Bank Profitability. Journal of International Financial Markets, Institutions & Money 18 : 121-136.
Berger, A.N.; Klapper, L.F., and Udell, G.F. (2001). The Ability of Banks to Lend to Informationally Opaque Small Businesses. Journal of Banking & Finance 25 : 2127-2167.
Berger, A.N.; Hasan, I., and Zhou, M. (2010). The Effects of Focus Versus Diversification on Bank Performance: Evidence from Chinese Banks. Journal of Banking & Finance 34 : 1417-
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Berry, A. and Grant, P. (2004). European Bank Lending to the UK SME Sector. International Small Business Journal Vol. 22 (2): 115-130.
Bikker, J. A., and Haaf, K. (2002). Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry. Journal of Banking and Finance 26: 2191-2214.
Bonin, J.P.; Hasan, I. and Paul W. (2005). Bank Performance, Efficiency and Ownership in Transition Countries. Journal of Banking & Finance 29 : 31-53.
Casu, B. and Molyneux, P. (2003). A comparative study of efficiency in European Banking. Applied Economics, 35: 1865-1876.
Chan, S.G, and Abd Karim, M.Z. (2010). Bank Efficiency and Macroeconomic Factors: the Case of Developing Countries. Global Economic Review, 39:3, 269-289.
Chang, C.E., Hasan, I., & Hunter, W. (1998). Efficiency of multinational banks: An empirical investigation. Applied Financial Economics, 8: 689-696.
Clarke, G; Cull, R.; Peria, M.S. M., and Sanchez, S.M. (2005). Bank Lending to Small Businesses n Latin America: Does Bank Origin Matter?. Journal of Money, Credit and Banking, Vol.37, No. 1 (Feb, 2005), pp. 83-118.
Devaney, M. and Weber, W.L. (2002). Small-Business Lending and Profit Efficiency in Commercial Banking. Journal of Financial Services Research 22:3, 225-246.
Drake, L. and Hall, M.J.B. (2003). Efficiency in Japanese banking: An empirical analysis. Journal of Banking & Finance 27 (2003) : 891-917.
Dunkelberg, W. C. (1998). Credit, Banks and Small Business in America. Journal of Banking & Finance 22 : 1085-1088.
El-Gamal, M. A (2005). Islamic Bank Corporate Governance and Regulation: A Call for Mutualization. Rice University.
Fang, Y.; Hasan, I, and Marton, K. (2011). Bank Efficiency in South-Eastern Europe: The Role of Ownership, Market Power, and Institutional Development. Economics of Transition Volume 19 (3), 495-520.
Fethi, M. D. and Pasioras, F. (2010). Assessing Bank Efficiency and Performance with Operational research and Artificial Intelligence Techniques: A Survey. European Journal of operation Research 204: 189-198.
Fethi, M.D.; Shaban, M., and Jones, T. W. (2011). Liberalisation, Privatisation, and the Productivity of Egyptian banks: A Non-parametric Approach. The Service Industries Journal, 31:7, 1143-1163.
Fu, X. (Maggie) and Heffernan, S. (2009). The Effects of Reform on China’s Bank Structure and Performance. Journal of Banking & Finance 33 : 39-52.
Gardener, E., Molyneux, P. and Nguyen-Linh, Hoai (2011). Determinants of efficiency in South East Asian Banking. The Service Industries Journal. 31:16, 2693-2719.
Grigorian, D.A. and Manole, V. (2006). Determinants of commercial banks performance in transition: An application of data envelopment analysis. Comparative Economic Studies, 48: 497-522.
Haas, R.D.; Ferreira, D., and Taci, A. (2010). What Determines The Composition of Banks’ Loan Portfolios? Evidence from Transition Countries. Journal of Banking & Finance 34 :
388-398.
Hadad, M.D.; Hall, M. J.B.; Kenjegalieva, K.A.; Santoso, W.; Satria, R., and Simper, R. (2011). Banking Efficiency and Stock Market Performance: An Analysis of Listed Indonesian Banks. Rev Quant Finan Acc 37:1-20.
Hadad, M.D.; Hall, M.J.B.; Kenjegalieva, K.A.; Santoso, W., and Simper, R. (2011). Productivity Changes and Risk Management in Indonesian banking: Malmquist Analysis. Applied Financial Economics, 21: 847-861.
Hamiltona, R., and Qasrawib, W., and Al-jarrah, I.M. (2010). Cost and Profit Efficiency in the Jordan Banking Sector 1993-2006: A Parametric Approach. International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 56.
Hasan, I. and Marton, K. (2003). Development and Efficiency of the Banking Sector in A Transitional Economy: Hungarian Experience. Journal of Banking & Finance 27 : 2249- 2271.
Havrylchyk, O. (2005). Efficiency of the Polish banking Industry: Foreign versus domestic banks. Journal of Banking and Finance, 30: 1975-1996.
Heffernan, S.A.(2009). Modern Banking. John Wiley & Sons, Ltd.
Heffernan, S. A., and Fu, X. (2010). Determinants of Financial Performance in Chinese Banking. Applied Financial Economics, 20: 20, 1585-1600.
Holden, K. and El-Bannany, M. (2004). Investment in Information Technology Systems and Other Determinants of Bank Profitability in UK. Applied Financial Economics, 14: 5, 361-365.
Jayaratne, J. and Wolken, J.(1999). How Important are Small Banks to Small Business Lending? New Evidence from A Survey of Small Firms. Journal of Banking and Finance 23 : 427- 458.
Kannan, R.; Narain, A. and Gosh, S. (2001). Determnants of Net Interest Margin under Regulatory Requirements: An Econometric Study. Economic and Political Weekly, Vol. 36, No. 4, Money, Banking & Finance (Jan. 27 – Feb. 2, 2001), pp. 337-339+341-344.
Kao, C. and Liu, S.T. (2004). Predicting bank performance with financial forecasts: A case of Taiwan commercial banks. Journal of Banking & Finance 28 (2004): 2353-2368.
Kenjegalieva, K.A.; Simper, R.; and Jones, T.G.W. (2009). Efficiency of transition banks: intercountry banking industry trends. Applied Financial Economics, 2009, 19, 1531-1546.
Kunt, A.D. and Huizinga, H. (1999). Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence. The World Bank Economic Review, Vol. 13, No. 2 (May, 1999), pp. 379-408.
Mamatzakis, E; Staikouras, C. and Filippaki, A.K. (2008). Bank Efficiency in the New European Union Member States: Is There Convergence?. International Review of Financial Analysis, 1156-1172.
Margono, H.; Sharma, S.C., and Melvin II, P.D. (2010). Cost Efficiency, Economies of Scale, Technological Progress and Productivity in Indonesian Banks. Journal of Asian Economics
21: 53-65.
Maudos, J. ; Guevara, D; and Fernandez, J. (2004). Factors Explaining the Interest Margin in the Banking Sectors of the European Union. Journal of Banking & Finance 28 : 2259-2281.
Miller, S.M., and Noulas, A.G. (1997). Portfolio Mix and Large-bank Profitability in the USA. Applied Economics, 29: 4, 505-512.
Molyneux, P. and Thornton, J. (1992). Determinants of European Bank Profitability: A Note. Journal of Banking & Finance 16 : 1173-1178.
Nikiel, E.M.and Opiela, T.P. (2002). Customer type and bank efficiency in Poland: Implications for emerging banking market. Contemporary Economic Policy, 20: 255-271.
Olivero, M.P.; Li, Y.; and Jeon, B.N. (2011). Competition in banking and the Lending Channel: Evidence from Bank-Level data in Asia and Latin America. Journal of banking and finance 35: 560-571.
Olivero, M.P.; Li, Y.; and Jeon, B.N. (2011). Consolidation in banking and the Lending Channel of Monetary Transmission: Evidence from Asia and Latin America. Journal of International Money and Finance 30: 1034-1054.
Patten, R.H.; Rosengard, J.K.; and Johnston, D.E. (2001). Microfinance success amidst macroeconomic failure: The experience of Bank Rakyat Indonesia during the east Asian crisis. World Development Vol. 29, No. 6, pp. 1057-1069.
Peek, J. and Rosengren, E.S. (1998). Bank Consolidation and Small Business Lending: It’s not just Bank Size that Matters. Journal of Banking & Finance 22 : 799-819.
Scott, J.A. and Dunkelberg, W.C. (2003). Bank Mergers and Small Firm Financing. Journal of Money, Credit and Banking, Vol. 35, No. 6, Part 1 (Dec, 2003), pp. 999-1017.
Shaban, M. (2008). Financial Liberalisation, Privatisation, and Productivity in Banking: The Experience in Two Emerging Economies. PhD Thesis, School of Management, University of Leicester, UK.
Shin, D.J. and Kim, B.H.S. (2011). Efficiency of the Banking Industry Structure in Korea. Asian Economic Journal 2011, Vol. 25 No. 4, 355-373.
Strahan, P.E. and Weston, J.P. (1998). Small Business Lending and the Changing Structure of the Banking Industry. Journal of Banking & Finance 22 : 821-845.
Sufian, F. and Habibullah, M.S. (2009). Determinants of Bank Profitability in A Developing Economy: Empirical Evidence from Bangladesh. Journal of Business Economics and Management, 10: 3, 207-217.
Sufian, F. (2010). The Impact of the Asian financial crisis on bank efficiency: the 1997 experience of Malaysia and Thailand. Journal of International Development, 22, 866-889.
Sufian, F. (2011). Benchmarking the efficiency of the Korean banking sector: a DEA approach. Benchmarking: An International journal Vo. 18 No. 1, 2011 pp. 107-127.
Suzuki, Y., and Sastrosuwito, S. (2011). Efficiency and Productivity Change of the Indonesian Commercial Banks. 2011 International Conference on economics, Trade and development IPEDR vol.7, IACSIT, Singapore.
Timberg, T.A. (1999). Small and Micro-Enterprise Finance in Indonesia: What Do We Know?. USAID-funded Partnership for Economic Growth (PEG) Projects. ECG, USAID Jakarta.
Valverde, S.C. and Fernandez, F.R. (2007). The Determinants of Bank Margins in European Banking. Journal of Banking & Finance 31 : 2043-2063.
Vivas, A. L., and Kumbhakar, S. C., and Fethi, M.D. and Shaban, Mohamed (2011). Consolidation in the European Banking Industry: How Effective is It?. Journal of Productivity Analysis, 2011. Page 1-15. Article in Press. ISSN: 0895562X. DOI: 10.1007/s11123-011-0212-8 Published online: 06 April 2011.
Williams, B. (1998). Factors Affecting the Performance of Foreign-owned Banks in Australia: A Cross Sectional Study. Journal of Banking & Finance 22 : 197-219.
Yao, S.; Han, Z.; and Feng, G. (2008). Ownership reform, foreign competition and efficiency of Chinese Commercial Banks: A non-parametric approach. The World Economy (2008): 1310-1326.
Yuan, Y. (2006). The State of Competition of the Chinese Banking Industry. Journal of Asian Economics 17: 519-534.
Greene, W.H. (2003). Econometrics Analysis, 5th Edition. Upper Saddle River: Prentice Hall. Department of Cooperative and Small Medium Enterprises, Republic of Indonesia, Jakarta Indonesia. http://www.depkop.go.id/Departemen Koperasi Republik Indonesia. Situs: http://www.depkop.go.id/
Statistik Perbankan Indonesia - Vol. 7, No. 1, Desember 2008, Bank Indonesia.
Undang-Undang Republik Indonesia Nomor 9 Tahun 1995 tentang Usaha Kecil.
Gitman, L.J. (2011). Principles of managerial finance. 13th Edition, Global Edition, Pearson Education.
Brealey, R.A., Myers, S.C., and Allen, F. (2011). Principles of corporate finance. 10th Edition. McGraw-Hill/Irwin.
4(2):30- 44.
Saleh, A.S. and Zeitun, R. (2005). The Development of Islamic Banking in Lebanon: Prospects and Future Challenges. International Association for Islamic Economics. Review of Islamic
Economics, Vol. 9, No. 2, 2005: pp 77-91.
Aburime, U.T. and Alio, F.(2009). Islamic Banking: Theories, Practices, and Insights for Nigeria. International Review of Business Research Papers Vol 5, No. 1, pp.321-329.
Ariff, M. and Can, L. (2008). Cost and profit efficiency of Chinese banks: A non-parametric analysis. China Economic Review, 19(2): 260-273.
Molyneux, P. (2010). Jinnah, Islamic Banking and the New Financial Architecture. Working Paper, Division of Financial Studies. Bangor Business School, Bangor University, UK.
Akram, M.; and Rafique, M.; and Alam, H.M. (2011). Prospects of Islamic Banking: Reflections from Pakistan. Australian Journal of Business and Management Research. Vol.1 No.2 May-
2011.
Ametefe, F.; Aboagye, A.Q.Q.; and Kuman-koma, E.S. (2011). Housing and Contraction Finance, Deposit Mobilisation, and Bank Performance in Ghana. Journal of Property Research, 28:
2, 151 — 165.
Athanasoglou, P. P.; Brissimis, S.N., and Delis, M.D. (2008). Bank-specific, Industry-specific and Macroeconomic Determinants of Bank Profitability. Journal of International Financial Markets, Institutions & Money 18 : 121-136.
Berger, A.N.; Klapper, L.F., and Udell, G.F. (2001). The Ability of Banks to Lend to Informationally Opaque Small Businesses. Journal of Banking & Finance 25 : 2127-2167.
Berger, A.N.; Hasan, I., and Zhou, M. (2010). The Effects of Focus Versus Diversification on Bank Performance: Evidence from Chinese Banks. Journal of Banking & Finance 34 : 1417-
1435.
Berry, A. and Grant, P. (2004). European Bank Lending to the UK SME Sector. International Small Business Journal Vol. 22 (2): 115-130.
Bikker, J. A., and Haaf, K. (2002). Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry. Journal of Banking and Finance 26: 2191-2214.
Bonin, J.P.; Hasan, I. and Paul W. (2005). Bank Performance, Efficiency and Ownership in Transition Countries. Journal of Banking & Finance 29 : 31-53.
Casu, B. and Molyneux, P. (2003). A comparative study of efficiency in European Banking. Applied Economics, 35: 1865-1876.
Chan, S.G, and Abd Karim, M.Z. (2010). Bank Efficiency and Macroeconomic Factors: the Case of Developing Countries. Global Economic Review, 39:3, 269-289.
Chang, C.E., Hasan, I., & Hunter, W. (1998). Efficiency of multinational banks: An empirical investigation. Applied Financial Economics, 8: 689-696.
Clarke, G; Cull, R.; Peria, M.S. M., and Sanchez, S.M. (2005). Bank Lending to Small Businesses n Latin America: Does Bank Origin Matter?. Journal of Money, Credit and Banking, Vol.37, No. 1 (Feb, 2005), pp. 83-118.
Devaney, M. and Weber, W.L. (2002). Small-Business Lending and Profit Efficiency in Commercial Banking. Journal of Financial Services Research 22:3, 225-246.
Drake, L. and Hall, M.J.B. (2003). Efficiency in Japanese banking: An empirical analysis. Journal of Banking & Finance 27 (2003) : 891-917.
Dunkelberg, W. C. (1998). Credit, Banks and Small Business in America. Journal of Banking & Finance 22 : 1085-1088.
El-Gamal, M. A (2005). Islamic Bank Corporate Governance and Regulation: A Call for Mutualization. Rice University.
Fang, Y.; Hasan, I, and Marton, K. (2011). Bank Efficiency in South-Eastern Europe: The Role of Ownership, Market Power, and Institutional Development. Economics of Transition Volume 19 (3), 495-520.
Fethi, M. D. and Pasioras, F. (2010). Assessing Bank Efficiency and Performance with Operational research and Artificial Intelligence Techniques: A Survey. European Journal of operation Research 204: 189-198.
Fethi, M.D.; Shaban, M., and Jones, T. W. (2011). Liberalisation, Privatisation, and the Productivity of Egyptian banks: A Non-parametric Approach. The Service Industries Journal, 31:7, 1143-1163.
Fu, X. (Maggie) and Heffernan, S. (2009). The Effects of Reform on China’s Bank Structure and Performance. Journal of Banking & Finance 33 : 39-52.
Gardener, E., Molyneux, P. and Nguyen-Linh, Hoai (2011). Determinants of efficiency in South East Asian Banking. The Service Industries Journal. 31:16, 2693-2719.
Grigorian, D.A. and Manole, V. (2006). Determinants of commercial banks performance in transition: An application of data envelopment analysis. Comparative Economic Studies, 48: 497-522.
Haas, R.D.; Ferreira, D., and Taci, A. (2010). What Determines The Composition of Banks’ Loan Portfolios? Evidence from Transition Countries. Journal of Banking & Finance 34 :
388-398.
Hadad, M.D.; Hall, M. J.B.; Kenjegalieva, K.A.; Santoso, W.; Satria, R., and Simper, R. (2011). Banking Efficiency and Stock Market Performance: An Analysis of Listed Indonesian Banks. Rev Quant Finan Acc 37:1-20.
Hadad, M.D.; Hall, M.J.B.; Kenjegalieva, K.A.; Santoso, W., and Simper, R. (2011). Productivity Changes and Risk Management in Indonesian banking: Malmquist Analysis. Applied Financial Economics, 21: 847-861.
Hamiltona, R., and Qasrawib, W., and Al-jarrah, I.M. (2010). Cost and Profit Efficiency in the Jordan Banking Sector 1993-2006: A Parametric Approach. International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 56.
Hasan, I. and Marton, K. (2003). Development and Efficiency of the Banking Sector in A Transitional Economy: Hungarian Experience. Journal of Banking & Finance 27 : 2249- 2271.
Havrylchyk, O. (2005). Efficiency of the Polish banking Industry: Foreign versus domestic banks. Journal of Banking and Finance, 30: 1975-1996.
Heffernan, S.A.(2009). Modern Banking. John Wiley & Sons, Ltd.
Heffernan, S. A., and Fu, X. (2010). Determinants of Financial Performance in Chinese Banking. Applied Financial Economics, 20: 20, 1585-1600.
Holden, K. and El-Bannany, M. (2004). Investment in Information Technology Systems and Other Determinants of Bank Profitability in UK. Applied Financial Economics, 14: 5, 361-365.
Jayaratne, J. and Wolken, J.(1999). How Important are Small Banks to Small Business Lending? New Evidence from A Survey of Small Firms. Journal of Banking and Finance 23 : 427- 458.
Kannan, R.; Narain, A. and Gosh, S. (2001). Determnants of Net Interest Margin under Regulatory Requirements: An Econometric Study. Economic and Political Weekly, Vol. 36, No. 4, Money, Banking & Finance (Jan. 27 – Feb. 2, 2001), pp. 337-339+341-344.
Kao, C. and Liu, S.T. (2004). Predicting bank performance with financial forecasts: A case of Taiwan commercial banks. Journal of Banking & Finance 28 (2004): 2353-2368.
Kenjegalieva, K.A.; Simper, R.; and Jones, T.G.W. (2009). Efficiency of transition banks: intercountry banking industry trends. Applied Financial Economics, 2009, 19, 1531-1546.
Kunt, A.D. and Huizinga, H. (1999). Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence. The World Bank Economic Review, Vol. 13, No. 2 (May, 1999), pp. 379-408.
Mamatzakis, E; Staikouras, C. and Filippaki, A.K. (2008). Bank Efficiency in the New European Union Member States: Is There Convergence?. International Review of Financial Analysis, 1156-1172.
Margono, H.; Sharma, S.C., and Melvin II, P.D. (2010). Cost Efficiency, Economies of Scale, Technological Progress and Productivity in Indonesian Banks. Journal of Asian Economics
21: 53-65.
Maudos, J. ; Guevara, D; and Fernandez, J. (2004). Factors Explaining the Interest Margin in the Banking Sectors of the European Union. Journal of Banking & Finance 28 : 2259-2281.
Miller, S.M., and Noulas, A.G. (1997). Portfolio Mix and Large-bank Profitability in the USA. Applied Economics, 29: 4, 505-512.
Molyneux, P. and Thornton, J. (1992). Determinants of European Bank Profitability: A Note. Journal of Banking & Finance 16 : 1173-1178.
Nikiel, E.M.and Opiela, T.P. (2002). Customer type and bank efficiency in Poland: Implications for emerging banking market. Contemporary Economic Policy, 20: 255-271.
Olivero, M.P.; Li, Y.; and Jeon, B.N. (2011). Competition in banking and the Lending Channel: Evidence from Bank-Level data in Asia and Latin America. Journal of banking and finance 35: 560-571.
Olivero, M.P.; Li, Y.; and Jeon, B.N. (2011). Consolidation in banking and the Lending Channel of Monetary Transmission: Evidence from Asia and Latin America. Journal of International Money and Finance 30: 1034-1054.
Patten, R.H.; Rosengard, J.K.; and Johnston, D.E. (2001). Microfinance success amidst macroeconomic failure: The experience of Bank Rakyat Indonesia during the east Asian crisis. World Development Vol. 29, No. 6, pp. 1057-1069.
Peek, J. and Rosengren, E.S. (1998). Bank Consolidation and Small Business Lending: It’s not just Bank Size that Matters. Journal of Banking & Finance 22 : 799-819.
Scott, J.A. and Dunkelberg, W.C. (2003). Bank Mergers and Small Firm Financing. Journal of Money, Credit and Banking, Vol. 35, No. 6, Part 1 (Dec, 2003), pp. 999-1017.
Shaban, M. (2008). Financial Liberalisation, Privatisation, and Productivity in Banking: The Experience in Two Emerging Economies. PhD Thesis, School of Management, University of Leicester, UK.
Shin, D.J. and Kim, B.H.S. (2011). Efficiency of the Banking Industry Structure in Korea. Asian Economic Journal 2011, Vol. 25 No. 4, 355-373.
Strahan, P.E. and Weston, J.P. (1998). Small Business Lending and the Changing Structure of the Banking Industry. Journal of Banking & Finance 22 : 821-845.
Sufian, F. and Habibullah, M.S. (2009). Determinants of Bank Profitability in A Developing Economy: Empirical Evidence from Bangladesh. Journal of Business Economics and Management, 10: 3, 207-217.
Sufian, F. (2010). The Impact of the Asian financial crisis on bank efficiency: the 1997 experience of Malaysia and Thailand. Journal of International Development, 22, 866-889.
Sufian, F. (2011). Benchmarking the efficiency of the Korean banking sector: a DEA approach. Benchmarking: An International journal Vo. 18 No. 1, 2011 pp. 107-127.
Suzuki, Y., and Sastrosuwito, S. (2011). Efficiency and Productivity Change of the Indonesian Commercial Banks. 2011 International Conference on economics, Trade and development IPEDR vol.7, IACSIT, Singapore.
Timberg, T.A. (1999). Small and Micro-Enterprise Finance in Indonesia: What Do We Know?. USAID-funded Partnership for Economic Growth (PEG) Projects. ECG, USAID Jakarta.
Valverde, S.C. and Fernandez, F.R. (2007). The Determinants of Bank Margins in European Banking. Journal of Banking & Finance 31 : 2043-2063.
Vivas, A. L., and Kumbhakar, S. C., and Fethi, M.D. and Shaban, Mohamed (2011). Consolidation in the European Banking Industry: How Effective is It?. Journal of Productivity Analysis, 2011. Page 1-15. Article in Press. ISSN: 0895562X. DOI: 10.1007/s11123-011-0212-8 Published online: 06 April 2011.
Williams, B. (1998). Factors Affecting the Performance of Foreign-owned Banks in Australia: A Cross Sectional Study. Journal of Banking & Finance 22 : 197-219.
Yao, S.; Han, Z.; and Feng, G. (2008). Ownership reform, foreign competition and efficiency of Chinese Commercial Banks: A non-parametric approach. The World Economy (2008): 1310-1326.
Yuan, Y. (2006). The State of Competition of the Chinese Banking Industry. Journal of Asian Economics 17: 519-534.
Greene, W.H. (2003). Econometrics Analysis, 5th Edition. Upper Saddle River: Prentice Hall. Department of Cooperative and Small Medium Enterprises, Republic of Indonesia, Jakarta Indonesia. http://www.depkop.go.id/Departemen Koperasi Republik Indonesia. Situs: http://www.depkop.go.id/
Statistik Perbankan Indonesia - Vol. 7, No. 1, Desember 2008, Bank Indonesia.
Undang-Undang Republik Indonesia Nomor 9 Tahun 1995 tentang Usaha Kecil.
Gitman, L.J. (2011). Principles of managerial finance. 13th Edition, Global Edition, Pearson Education.
Brealey, R.A., Myers, S.C., and Allen, F. (2011). Principles of corporate finance. 10th Edition. McGraw-Hill/Irwin.
Published
2016-03-31
How to Cite
Anwar, M. (2016). THE EFFICIENCY OF BANKS IN INDONESIA: SHARIA VS. CONVENTIONAL BANKS. Buletin Ekonomi Moneter Dan Perbankan, 18(3), 307-332. https://doi.org/10.21098/bemp.v18i3.552
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
