THE ISLAMIC BANKING AND THE ECONOMIC INTEGRATION IN ASEAN
Keywords:
ASEAN, Bank Efficiency, DEA, Islamic Banking
Abstract
The efficiency level of the banking industry is the most important indicator to identify the soundness of banking system. This paper use non parametric frontier approach, DEA, to analyze the Islamic bank efficiency in ASEAN. We use price of deposit from customers, deposits and placements of banks, labor, and others operational expenditures as control variabel, and using financing, deposits and placements on other insitution, securities, others investment as output variabel. We found that the mix bank is the most efficient group within the observation period. Furthermore, the average Islamic banking efficiency in Indonesia, on intermediation approach, is lower than the average of ASEAN, unless they can reduce the cost of labor and other operational expenses. This paper also examines the determinant of efficiency of the Islamic Banking in ASEAN. Internal factors are Total Aset, ROA, BOPO, and ETA, and external faktor are Market Power and Inflation. Using Tobit regression, the result shows the factors that most influence to the Islamic banking efficiency in Indoneisa is the total size of the bank or its assets, OPEX/OR, and Market Power.Downloads
Download data is not yet available.
References
Abdul Karim, Mohd Zaini. (2001). Comparative Bank Efficiency Across Select ASEAN Countries. Asean Economic Bulletin. Vol. IX.(3):289-304.
Ahmad M. AA, Hans-Peter B, dan Walayet AK. (2012), Islamic Commercial Banking In Europe: A Cross-Country And Inter-Bank Analysis Of Efficiency Performance. International Business & Economics Research Journal. June 2012 Volume 11(6): 647-676
Alamsyah H. (2012). Perkembangan dan prospek perbankan syariah Indonesia: tantangan dalam menyongsong MEA 2015. Ceramah Ilmiah Ikatan Ahli Ekonomi Islam (IAEI) [internet]. [diakses 2015 September 30]. Tersedia pada http://www.bi.go.id/id/ruang-media/pidatodewan-gubernur/Documents/6bf00812e40b4d0cb140ea80239c4966PerkembanganProspekPerbankanSyariahIndonesiaMEA201.pdf
Ascarya. (2008). Efficiency analysis of islamic and conventional banks in Indonesia using parametric SFA and DFA methods. Journal of Islamic Business and Economics.2(2)
Barr RS, Killgo KA, Siems TF, Zimmel S. (1999). Evaluating the productive efficiency and performance of US. Commercial Bank. Managerial Finance. 28 (8): 3 – 25
Barros CP, Mascarenhas MJ. (2005). Technical and allocative effciency in a chain of small hotels. International Journal of Hospitality Management. 24: 415–436.
Berger AN, Humphrey DB. (1997). Efficiency of financial institutions: international survey and directions for future research. European Journal of Operational Research 98 (2): 175-212
Berger, A. N. and L. J. Mester. (1997). Inside The Black Box: What Explains Differences in The Efficiencies of Financial Institutions?. Journal of Banking and Finance, 21: 895-947.
Bhattacharyya A, Lovell C, Sahay P. (1997). The impact of liberalization on the productive efficiency of Indian commercial banks. European Journal of Operational Researc. 98: 332-345.
Coelli TJ, Rao DSP, Battese, O’Donnell CJ. (1998). An Introduction to Efficiency And Productivity Analysis. USA (US): Kluwer Academic Publisher.
Cooper WW, Seiford LM, Tone K. (2007). Data Envelopment Analysis: A comprehensive Text with Models, Applications, References and DEA-Solver Software. New York(US): Springer
Departemen Perbankan Syariah Bank Indonesia. (2014). Analisis Efisiensi Perbankan Syariah. Jakarta (ID): Bank Indonesia
Hadad M, Santoso W, Mardanugraha E, Ilyas D. (2003). Pendekatan Parametrik Untuk Efisiensi Perbankan Indonesia. Jakarta (ID): Bank Indonesia
Hadad M, Santoso W, Mardanugraha E, Ilyas D. (2003). Analisis Efisiensi Industri Perbankan Indonesia: Penggunaan Metode Non Parametrik Data Envelopment Analysis (DEA). Bank Indonesia, Jakarta
Hauner David. (2005). Aging: Some Pleasant Fiscal Arithmetic, IMF Working Papers 05/71, International Monetary Fund Herlambang, Sigit. (2011). Analisis tingkat efisiensi faktor-faktor operasional BRI dan BTN [tesis].Bogor (ID): Institut Pertanian Bogor.
Lang, G. and P. Welzel. (1996). Efficiency and Technical Progress in Banking: Empirical Results For A Panel of German Cooperative Banks. Journal of Banking and Finance, 20: 1003-1023.
Magrianti, Tessa. (2011). Analisis perbaningan efisiensi bank umum syariah dengan bank umum konvensional di Indonesia [tesis]. Bogor (ID): Institut Pertanian Bogor
Nadratuzzaman, Muhamad. (2013). Produk Keuangan Islam di Indonesia dan Malaysia. Jakarta (ID): PT Gramedia Pustaka Utama
Pass C, Lowes B. (1997). Collins Kamus Lengkap Ekonomi. Ed ke-2. Jakarta (ID): Erlangga.
Pratama, Fajar P. (2011). Analisis efisiensi bank umum persero di Indonesia [tesis]. Bogor (ID): Institut Pertanian Bogor.
Ramli, Mahyuddin. (2005). Studi tingkat rfisiensi bank komersial di Indonesia dan beberapa faktor penentu [desertasi]. Jakarta (ID): Universitas Indonesia
Srivastava P. (1999). Size, Efficiency, and financial reforms in Indian Banking. [Working Paper]. New Delhi, India (IN): Indian Council For Research On International Economic Relations. No. 49.
Sufian, Fadzlan. (2006). The efficiency of islamic banking industry: a non-parametric analysis with non-discretionary input variable. Islamic Economic Studies. 14 (2): 147-175
Suswadi. (2007). Analisis efisiensi perbankan syariah di Indonesia (metode stochastic frontier approach) [skripsi]. Jakarta (ID): Universitas Indonesia
Thangavelu, Mugan S, Findlay, Charles C. (2010). Bank efficiency, regulation, and response to crisis of financial institutions in selected Asian Countries. Economic Research Institute for ASEAN and East Asia (ERIA) Research Project Report 2009: 288-315.
Yudistira, Donsyah. (2003). Efficiency in Islamic Banking: An Empirical Analysis of 18 Banks. [Paper]. United Kingdom (GB): Loughborough University
Ahmad M. AA, Hans-Peter B, dan Walayet AK. (2012), Islamic Commercial Banking In Europe: A Cross-Country And Inter-Bank Analysis Of Efficiency Performance. International Business & Economics Research Journal. June 2012 Volume 11(6): 647-676
Alamsyah H. (2012). Perkembangan dan prospek perbankan syariah Indonesia: tantangan dalam menyongsong MEA 2015. Ceramah Ilmiah Ikatan Ahli Ekonomi Islam (IAEI) [internet]. [diakses 2015 September 30]. Tersedia pada http://www.bi.go.id/id/ruang-media/pidatodewan-gubernur/Documents/6bf00812e40b4d0cb140ea80239c4966PerkembanganProspekPerbankanSyariahIndonesiaMEA201.pdf
Ascarya. (2008). Efficiency analysis of islamic and conventional banks in Indonesia using parametric SFA and DFA methods. Journal of Islamic Business and Economics.2(2)
Barr RS, Killgo KA, Siems TF, Zimmel S. (1999). Evaluating the productive efficiency and performance of US. Commercial Bank. Managerial Finance. 28 (8): 3 – 25
Barros CP, Mascarenhas MJ. (2005). Technical and allocative effciency in a chain of small hotels. International Journal of Hospitality Management. 24: 415–436.
Berger AN, Humphrey DB. (1997). Efficiency of financial institutions: international survey and directions for future research. European Journal of Operational Research 98 (2): 175-212
Berger, A. N. and L. J. Mester. (1997). Inside The Black Box: What Explains Differences in The Efficiencies of Financial Institutions?. Journal of Banking and Finance, 21: 895-947.
Bhattacharyya A, Lovell C, Sahay P. (1997). The impact of liberalization on the productive efficiency of Indian commercial banks. European Journal of Operational Researc. 98: 332-345.
Coelli TJ, Rao DSP, Battese, O’Donnell CJ. (1998). An Introduction to Efficiency And Productivity Analysis. USA (US): Kluwer Academic Publisher.
Cooper WW, Seiford LM, Tone K. (2007). Data Envelopment Analysis: A comprehensive Text with Models, Applications, References and DEA-Solver Software. New York(US): Springer
Departemen Perbankan Syariah Bank Indonesia. (2014). Analisis Efisiensi Perbankan Syariah. Jakarta (ID): Bank Indonesia
Hadad M, Santoso W, Mardanugraha E, Ilyas D. (2003). Pendekatan Parametrik Untuk Efisiensi Perbankan Indonesia. Jakarta (ID): Bank Indonesia
Hadad M, Santoso W, Mardanugraha E, Ilyas D. (2003). Analisis Efisiensi Industri Perbankan Indonesia: Penggunaan Metode Non Parametrik Data Envelopment Analysis (DEA). Bank Indonesia, Jakarta
Hauner David. (2005). Aging: Some Pleasant Fiscal Arithmetic, IMF Working Papers 05/71, International Monetary Fund Herlambang, Sigit. (2011). Analisis tingkat efisiensi faktor-faktor operasional BRI dan BTN [tesis].Bogor (ID): Institut Pertanian Bogor.
Lang, G. and P. Welzel. (1996). Efficiency and Technical Progress in Banking: Empirical Results For A Panel of German Cooperative Banks. Journal of Banking and Finance, 20: 1003-1023.
Magrianti, Tessa. (2011). Analisis perbaningan efisiensi bank umum syariah dengan bank umum konvensional di Indonesia [tesis]. Bogor (ID): Institut Pertanian Bogor
Nadratuzzaman, Muhamad. (2013). Produk Keuangan Islam di Indonesia dan Malaysia. Jakarta (ID): PT Gramedia Pustaka Utama
Pass C, Lowes B. (1997). Collins Kamus Lengkap Ekonomi. Ed ke-2. Jakarta (ID): Erlangga.
Pratama, Fajar P. (2011). Analisis efisiensi bank umum persero di Indonesia [tesis]. Bogor (ID): Institut Pertanian Bogor.
Ramli, Mahyuddin. (2005). Studi tingkat rfisiensi bank komersial di Indonesia dan beberapa faktor penentu [desertasi]. Jakarta (ID): Universitas Indonesia
Srivastava P. (1999). Size, Efficiency, and financial reforms in Indian Banking. [Working Paper]. New Delhi, India (IN): Indian Council For Research On International Economic Relations. No. 49.
Sufian, Fadzlan. (2006). The efficiency of islamic banking industry: a non-parametric analysis with non-discretionary input variable. Islamic Economic Studies. 14 (2): 147-175
Suswadi. (2007). Analisis efisiensi perbankan syariah di Indonesia (metode stochastic frontier approach) [skripsi]. Jakarta (ID): Universitas Indonesia
Thangavelu, Mugan S, Findlay, Charles C. (2010). Bank efficiency, regulation, and response to crisis of financial institutions in selected Asian Countries. Economic Research Institute for ASEAN and East Asia (ERIA) Research Project Report 2009: 288-315.
Yudistira, Donsyah. (2003). Efficiency in Islamic Banking: An Empirical Analysis of 18 Banks. [Paper]. United Kingdom (GB): Loughborough University
Published
2016-09-30
How to Cite
Solihin, S., Achsani, N., & Saptono, I. (2016). THE ISLAMIC BANKING AND THE ECONOMIC INTEGRATION IN ASEAN. Buletin Ekonomi Moneter Dan Perbankan, 19(1), 81-106. https://doi.org/10.21098/bemp.v19i1.601
Issue
Section
Articles
Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
