DETERMINANT OF EFFICIENCY OF THE ISLAMIC BANKING IN INDONESIA
Keywords:
Data panel, DEA, efficiency, Indonesia, Islamic banking
Abstract
Dual banking system in Indonesia provides an excellent opportunity for the growth of Islamic banking industry in Indonesia. Islamic banking industry in Indonesia has improved in number of banks and branches but the performance of Islamic banks has decreased in recent years. This paper measures the efficiency of Islamic banking in Indonesia using the intermediation approach and the Data Envelopment Analysis (DEA) on quarterly reports of 10 Islamic Banks (BUS) and 15 Islamic Business Units (UUS). The results showed that Islamic Banks (BUS) and Islamic Business Units (UUS) in Indonesia has not been operating efficiently in its intermediation function. The estimation results of data panel regression model showed total financing and CAR have positive and significant impact, whereas the deposits have negative and significant impact to the efficiency of BUS and UUS in Indonesia.
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References
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Widiarti AW. 2015. Determinan Efisiensi dan Profitabilitas Perbankan di Indonesia. [Tesis]. Bogor
(ID): Institut Pertanian Bogor.
Yudistiara D. 2003. Efficiency in Islamic Banking: An Empirical Analysis of 18 Banks. Paper
Loughborough University, United Kingdom.
Zamil NAM. 2007. Efficiency of Islamic and Conventional Commercial Banks in Malaysia: A
Data Envelopment Analysis (DEA) Study. [Disertasi]. Malaysia: International Islamic University
Malaysia (IIUM).
Banks in Indonesia. Majalah Usahawan Indonesia, No. 06
Ada AA, Dalkinic N. 2014. Efficiency Analysis in Islamic Banks: A Study For Malaysian and
Turkey. BDDK Bankacilik ve Finansal Piyasalar, 8(1):19‒33.
Antonio MS. 2001. Bank Syariah dari Teori ke Praktik. Jakarta (ID): Penerbit Gema Insani Press.
Ascarya dan Yumanita D. 2005. Bank Syariah: Gambaran Umum, Pusat Pendidikan dan Studi
Kebanksentralan (PPSK). Jakarta(ID): Bank Indonesia.
Berger AN, Humphrey DB. 1992. Measurement and Efficiency Issues in Commercial Banking.
National Bureau of Economic Research, p. 245-300
Chansarn S. 2008. The Relative Efficiency of Commercial Banks in Thailand. International
Research Journal of Finance and Economics, 53-68.
Endri. 2010. Evaluasi Efisiensi Teknis Perbankan Syariah di Indonesia: Aplikasi Two-Stage Data
Envelopment Analysis. Finance and Banking Journal. STEI TAZKIA.
Firdaus dan Hosen. 2013. Efisiensi Bank Umum Syariah Menggunakan Pendekatan Two-Stage
Data Envelopment Analysis. Buletin Ekonomi Moneter dan Perbankan, 16 (2): 155-176.
Gupta OK, Doshit Y, Chinubhai A. 2008. Dynamics of Productive Efficiency of Indian Banks.
International Journal of Operations Research. 5(2): 78-90. Finance and Economics. USA.
1 (1):1-22.
Hadad MD, Wimboh S, Dhaniel I, Eugenia M. 2003. Pendekatan Parametrik Untuk Efisiensi
Perbankan Indonesia. Research Paper. No 4/5. Biro Stabilitas Sistem Keuangan Bank
Indonesia.
Hassan MK. 2006. The X-Efficiency in Islamic Banks. Islamic Economic Studies, 13(2).
Hidayat HR. 2011. Kajian Efisiensi Perbankan Syariah di Indonesia (Pendekatan Data Envelopment
Analysis). Media Riset Bisnis & Manajemen, 1-19.
Isik, I dan Hassan MK. 2003. Efficiency, Ownership, and Market Structure, Corporate Control
and Governance in the Turkish Banking Industry. Journal of Business Finance & Accounting,
30(9&10): 1363-1421.
Jackson PM, Fethi MD. 2000. Evaluating the Technical Efficiency of Turkish Commercial Bank:
An Application of DEA and Tobit Analysis. ResearchGate. University of Leicester, 18.
Karimah S. 2016. Kajian Efisiensi Bank Umum Syariah di Indonesia dan Faktor-faktor yang
Memengaruhinya. [Tesis]. Bogor(ID): Institut Pertanian Bogor.
Lutfiana RH, Yulianto A. 2015. Determinan Tingkat Efisiensi Bank Umum Syariah di Indonesia
(Pendekatan Two Stage DEA). Accounting Analysis Journal, 4(3).
Mansyur F. 2012. Analisis Perbandingan Efisiensi Bank Umum Syariah dan Bank Umum
Konvensional di Indonesia Menggunakan Metode Stochastic Frontier Approach (SFA).
[Tesis]. Yogyakarta (ID): UIN Sunan Kalijaga Yogyakarta.
Mokhtar HSA, Abdullah N, Alhabshi SM. 2008. Efficiency and Competition of Islamic Banking
in Malaysia. Journal Humanomics, 24 (1): 28-48. Emerald: Group Publishing Limited.
Muharam H, Pusvitasari R. 2007. Analisis Perbandingan Efisiensi Bank Syariah di Indonesia
dengan Metode Data Envelopment Analysis (periode tahun 2005). Jurnal Ekonomi Islam,
2 (3): 13-26.
Noor MANM, Ahmad NH, Sufian F. 2010. The Efficiency of Islamic Banks: Empirical Evidence
from the Asian Countries Islamic Banking Sectors. MPRA. Inderscience Enterprises Ltd.
Nurhayati S, Wasilah. 2013. Akutansi Syariah di Indonesia: Edisi 3. Jakarta(ID): Salemba Empat.
Pratikto H, Sugianto I. 2011. Kinerja Efisiensi Bank Syariah Sebelum dan Sesudah Krisis Global
berdasarkan Data Envelopment Analysis (DEA). Jurnal Ekonomi Bisnis, 16 (2).
Ramli M. Studi tentang Tingkat Efisiensi Bank Komersial di Indonesia dan Beberapa Faktor
Penentu. [Disertasi]. Depok(ID): Universitas Indonesia.
Subandi, Ghozali I. 2013. Determinan Efisiensi dan Dampaknya terhadap Kinerja Profitabilitas
Industri Perbankan Indonesia. Jurnal Keuangan dan Perbankan, 17 (1): 123-135.
Sufian F. 2007. The Efficiency of Islamic Banking Industry in Malaysia: Foreign Versus Domestic
Banks. Paper INCEIF Colloquium. Malaysia.
Sufian F, Noor Mohammad AMN. 2009. The Determinants of Islamic Bank Efficiency Changes:
Empirical Evidence from the MENA and Asian Banking Sectors. Journal the Middle East
Business and Economic Review, 20 (1): 179-200.
Suseno P. 2008. Analisis Efisiensi dan Skala Ekonomi pada Industri Perbankan Syariah di
Indonesia. Jurnal Ekonomi Islam. 2 (1). Yogyakarta (ID): Pusat Pengkajian dan Pengembangan
Ekonomi Islam (P3EI) Fakultas Ekonomi UII.
Wheelock DC dan Wilson PW. 1999. Technical Progress Inefficiency and Productivity Change
in U.S. Banking. 1984-1993. Journal of Money, Credit, and Banking, 31(2).
Widiarti AW. 2015. Determinan Efisiensi dan Profitabilitas Perbankan di Indonesia. [Tesis]. Bogor
(ID): Institut Pertanian Bogor.
Yudistiara D. 2003. Efficiency in Islamic Banking: An Empirical Analysis of 18 Banks. Paper
Loughborough University, United Kingdom.
Zamil NAM. 2007. Efficiency of Islamic and Conventional Commercial Banks in Malaysia: A
Data Envelopment Analysis (DEA) Study. [Disertasi]. Malaysia: International Islamic University
Malaysia (IIUM).
Published
2017-09-28
How to Cite
Hidayati, N., Siregar, H., & Pasaribu, S. (2017). DETERMINANT OF EFFICIENCY OF THE ISLAMIC BANKING IN INDONESIA. Buletin Ekonomi Moneter Dan Perbankan, 20(1), 29-48. https://doi.org/10.21098/bemp.v20i1.723
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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.
