scholarly journals COMPARISON OF EFFICIENCY AND MODELLING OF ISLAMIC BANKS AND CONVENTIONAL BANKS IN INDONESIA

2016 ◽  
Vol 4 (2) ◽  
pp. 102 ◽  
Author(s):  
Ar Royyan Ramly
Keyword(s):  
Third Party ◽  
P Value ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Input And Output ◽  
Significant Difference ◽  
Input Variables ◽  
Efficiency Comparison ◽  
Conventional Banks

This study aims to analyze the efficiency comparison between Islamic banks and conventional banks in Indonesia in 2012-2014. The data in this study were chosen through purposive sampling from 20 Islamic banks and conventional banks in Indonesia. The method used in this study is non-parametric approach with data envelopment analysis (DEA) whereas input and output variables are treated in intermediary function. The input variables are total asset, total saving (third party fund), and price of labor while the output variables are total financing (loans) and total operational expenses. To measure the efficiency level of Islamic banks and conventional banks the independent sample t test is used.The result of the study shows that there is no significant difference of efficiency between Islamic banking and conventional banking in 2014 because of the significant value (2-tailed) only at 0.537 where P-value is higher than α=0.05 Ha is refused. There is no difference of efficiency between Islamic banks and conventional banks in efficiency scale (ES). The empirical factors that affect Islamic banks and Conventional banks efficiency are ROA, CAR, and FDR variables. On the other hand, NPF results insignificantly and affects negatively towards Islamic banks efficiency. Lastly, ROA, NPL, LDR, and CAR had significantly affected Conventional banks efficiency in Indonesia from 2012 to 2014.

scholarly journals COMPARISON OF ISLAMIC BANK PERFORMANCE AND CONVENTIONAL BANK PERFORMANCE IN PROVINCE WITH MUSLIM MAJORITY AND PROVINCE WITH NONMUSLIM MAJORITY POPULATION IN INDONESIA

2020 ◽  
Vol 1 (2) ◽  
pp. 76
Author(s):  
Eko Fajar Cahyono ◽  
M Fariz Fadillah Mardianto ◽  
Tika Widiastuti
Keyword(s):  
Commercial Banking ◽  
Third Party ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Majority Population ◽  
Significant Difference ◽  
Muslim Majority ◽  
Conventional Banks ◽  
Party Funding

This study aims to examine the universality of Islamic banking services and products and conventional banks in Indonesia to test whether all circles both Muslims and non-Muslims can accept the services and products of Islamic banks and conventional banks. The method used using MANOVA ( Multivariate Analysis of Variance )  test by comparing the performance of Islamic banks and conventional banks represented by several indicators like third party fund and financing or lending in some provinces in Indonesia. There are two categories of provinces, namely the first category is the province of the province with the majority Muslim population and the second is the provincial category of provinces with non-Muslim majority population in Indonesia. There is no significant difference in the performance of third-party funding of Conventional Commercial and Islamic Banking in Provinces with Majority of Moslems and Non-Muslim Majority  Provinces. There is no significant difference in the performance of credit distribution of Conventional Commercial Banking and Islamic Comercial Banking in Provinces with Majority of Moslems and Non-Muslim Majority Provinces.

scholarly journals Komparasi Efisiensi Teknis Bank Umum Konvensional (BUK) dan Bank Umum Syariah (BUS) di Indonesia Dengan Metode Data Envelopment Analysis (DEA)

2014 ◽  
Vol 6 (2) ◽  
pp. 179-194
Author(s):  
Abdul Wahab ◽  
Muhammad Nadratuzzaman Hosen ◽  
Syafaat Muhari
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Third Party ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Parametric Data ◽  
Fixed Assets ◽  
Input Variables ◽  
Conventional Banks ◽  
Better Than

The Comparation of Technical Efficiency Between Conventional Banks and Islamic Banks in Indonesia Using DEA MethodThis research is to compare the levels of technical efficiency between BUK and BUS by employing non-parametric Data Envelopment Analysis (DEA). This research assigns Third Party Funds, Labor Expenses and Fixed Assets which are input variable, meanwhile Total Credit and Other Incomes are determined as Output Variables. This research also examines the Profitability of BUK and BUS by Using Panel Regression Model with CAR, LDR, NPL and BOPO as independent variables, where ROA and ROE are dependent variables. The result showed that the average technical efficiency of the Conventional Banks is better than that of the Islamic Banks. That is because of the inefficient utilization of Input Variables, namely Third Party Funds, Labor Expenses and Fixed Assets in the Islamic Banks  DOI:10.15408/aiq.v6i2.1229

scholarly journals Komparasi Efisiensi Penghimpunan Dana Pihak Ketiga Bank Umum Syariah Dan Bank Umum Konvensional Di Indonesia Dengan Metode Data Envelopment Analysis

2017 ◽  
Vol 3 (4) ◽  
pp. 280
Author(s):  
Yuliati Yuliati ◽  
Noven Suprayogi
Keyword(s):  
Data Envelopment Analysis ◽  
Hypothesis Test ◽  
Third Party ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Statistical Tool ◽  
Significant Difference ◽  
Conventional Banks ◽  
Accumulation Efficiency

This study aims to determine and comparing the level of third-party funds accumulation efficiency of Islamic Banks and Conventional Banks in Indonesia. This study uses a quantitative non-parametric approach with Data Envelopment Analysis (DEA) CRS and VRS assumption, and statistical tool namely Mann Whitney U-Test. The samples are 10 Islamic Banks and 13 Conventional Banks those comply with the specified sample criteria. During 2010 to 2014, Islamic Banks has efficiency level of third-party funds accumulation relatively higher than Conventional Banks based on CRS and VRS assumption. Source of inefficiency in Islamic Banks is the scale of third-party funds accumulation. While the hypothesis test showed there was no significant difference in the level of third-party funds accumulation efficiency between Islamic Banks and Conventional Banks in Indonesia with the assumption of CRS, VRS, and Scale efficiency.

scholarly journals Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

2016 ◽  
Vol 8 (11) ◽  
pp. 193 ◽  
Author(s):  
Arfianti Novita Anwar
Keyword(s):  
Secondary Data ◽  
Rank Test ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
The Law ◽  
Conventional Banks

<p>This study aims to analyze the performance of Islamic banks and conventional banks before and after the implementation of Islamic Banking Act 2008. The performance will be measured using CAMEL ratio selected. This research is considered essential in examining the positive contribution of the application of the Act to improve the performance of Islamic banks in Indonesia. By using secondary data, this study compared the performance of Islamic banks with that conventional bank selected as samples during the study period. Data were analyzed using the Wilcoxon Signed Rank Test for inter-temporal and Mann-Whitney test for inter-bank. Inter-temporal Tests conducted on Islamic Banking showed that a significant difference was only seen in the NPF ratio of 2 years before and after implementation of Islamic Banking Act. As for conventional banks showed a more diverse ie for 1 year before and after the application of the Law on Islamic Banking there are significant differences for the ROA and ROE, two years before and after implementation of the Law Islamic banking there are significant differences for the CAR, ROA, ROE and NIM and for the overall test a significant difference to CAR, ROA, ROE, NIM and efficiency. Inter-bank testing showed that prior to the application of Islamic Banking Act there are significant differences between conventional banks and Islamic banks to CAR, ROA and efficiency. Furthermore, after the application of Islamic Banking Act there is a significant difference for the CAR and LDR / FDR.</p>

scholarly journals Pricing Linkage between Islamic Banking and Conventional Banking: The Case of Bangladesh

2016 ◽  
Vol 3 (4) ◽  
pp. 84
Author(s):  
Sarwar Uddin Ahmed ◽  
Ashikur Rahman ◽  
Samuel Parvez Ahmed ◽  
G M Wali Ullah
Keyword(s):  
Profit Sharing ◽  
Islamic Banking ◽  
Specific Rate ◽  
Islamic Banks ◽  
Loss Mechanism ◽  
Monthly Data ◽  
For Profit ◽  
Significant Difference ◽  
Conventional Banks ◽  
The Relationship

<p><em>Islamic banking is based on profit and loss mechanism where the use of interest is prohibited.  Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing.  However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits.  On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship was inconclusive, and requires further analysis.</em></p>

scholarly journals Can the Implementation of Sharia Banks’ Roadmap Increase Their Performance? (Evidence from Indonesia 2012-2017)

2020 ◽  
Vol 12 (2) ◽  
Author(s):  
Riko Hendrawan
Keyword(s):  
Data Envelopment Analysis ◽  
T Test ◽  
P Value ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Average Efficiency ◽  
Road Map ◽  
Significant Difference ◽  
Dea Efficiency ◽  
Increase Efficiency

Abstract. The purpose of this research is to compare the efficiency of 11 Sharia Banks in Indonesia and its impact on their performance. This study relies on the quarterly data from 2012-2017 and applied Data Envelopment Analysis to measure their performance. The result of the T-test shows that the P-value for two tail = 0.706. So based on this trend the P-value is greater than α = 0.05 (P-value> α). In the condition of P-value> α, H1 is rejected, meaning that there is no change in the value of efficiency between the period 2012-2014 and the period 2015-2017. This research shows that the efficiency of Islamic banking has not occurred during the implementation of the 2012-2017 Indonesian Sharia Banking Roadmap. Furthermore, the highest efficiency value during the period before implementation was 0.92 with an average efficiency value of 0.57. This means that during this period there was room to increase efficiency by 0.35. Meanwhile the period after implementing the highest efficiency value was 0.87 with an average efficiency value of 0.59. This means that during this period there was room to increase efficiency by 0.28. This means that during the 2012-2017 period, there was no significant difference in efficiency levels during the 2012-2014 period (before the implementation) and the 2015-2017 period (after the implementation of the Islamic banking road map). Keywords: DEA, Efficiency, Sharia Bank Abstrak. Tujuan dari penelitian ini adalah untuk membandingkan efisiensi dari 11 Bank Syariah di Indonesia dan dampaknya terhadap kinerja bank tersebut. Penelitian ini menggunakan data setiap kuartal selama tahun 2012 hingga tahun 2017 dan menggunakan Data Envelopment Analysis untuk mengukur kinerja. Hasil penelitian ini menunjukan bahwa selama implementasi Roadmap, perbankan syariah belum menunjukan kenaikan efisiensi. Sementara itu, sebelum implementasi tersebut, nilai efisiensi tertinggi perbankan syariah sebesar 0,92, sedangkan rata-rata nilai efisiensinya sebesar 0,57. Ini berarti bahwa ada ruang untuk meningkatkan level efisiensi sebesar 0,35. Sedangkan pada periode implementasi, nilai efisiensi tertingi perbankan syariah sebesar 0,87, dan ratarata nilai efisiensinya sebesar 0,59. Ini berarti ada ruang untuk meningkatkan level efisiensi sebesar 0,28. Hasil penelitian juga menunjukan bahwa, secara keseluruhan periode tahun 2012 hingga tahun 2017, hasil t-test menunjukan nilai P-value for two tail = 0.706. Ini berarti P-value> α, dan menolak H1, sehingga tidak terdapat perbedaan level efisiensi selama periode 2012-2014 (sebelum implementasi) dan periode 2015 – 2017 (setelah implementasi) Kata kunci: DEA, Efisiensi, Bank Syariah

scholarly journals Analysis the level of Efficiency of Sharia Commercial Bank and Sharia Business Unit in Indonesia with Data Envelopment Analysis Method

2021 ◽  
Vol 17 (1) ◽  
pp. 89-98
Author(s):  
Roikhan Mochamad Aziz ◽  
Dita Nur Amanda
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Sampling Efficiency ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Business Unit ◽  
Analysis Method ◽  
Significant Difference ◽  
Efficiency Comparison ◽  
Using Data

This research has the purpose to measure efficiency and analyze the efficiency comparison between Sharia Commercial Bank (BUS) and Sharia Bussines Unit (UUS) in Indonesia and compare the efficiency during the period 2008-2013. There are 10 Islamic banks which are used as samples of this research consisting of 3 Sharia Commercial Bank (BUS) and 7 Sharia Business Unit (UUS) that were chosen by purposive sampling. Efficiency measurements in this research using Data Envelopment Analysis (DEA). To determine differences in efficiency between Sharia Commercial Bank (BUS) and Sharia Bussines Unit (UUS), this study uses a different test parametric independent sample t-test. The result of this research showed that there is no significant difference between the efficiency of Sharia Commercial Bank (BUS) and Sharia Bussines Unit (UUS), during the period of 2008-2013 with possible intervention t value (-0.429) < t table (2.002) and probability value =0.000.

scholarly journals MARKET POWER AND EFFICIENCY OF ISLAMIC BANKING AND CONVENTIONAL BANKING IN INDONESIA

2018 ◽  
Vol 6 (2) ◽  
pp. 131
Author(s):  
Chajar Matari Fath Mala ◽  
Ahmad Rodoni ◽  
Bahrul Yaman
Keyword(s):  
Market Power ◽  
Scale Efficiency ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Economic Community ◽  
Banking Market ◽  
Asean Economic Community ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

ASEAN Economic Community (AEC) of banking industry requires both Islamic and conventional banking to improve their efficiency because the competition in banking market industry will be more intense. Therefore, this study aims to identify the type of hyphotesis of industrial organization which exists in Islamic and conventional banks in order to investigate their readiness for AEC. The research sampling consists of 10 Islamic banks and 10 conventional banks from January 2009 to December 2016. To measure x-efficiency and scale efficiency, this research uses Data Envelopment Analysis (DEA). Meanwhile, the concentration is measured by Lerner index. The hypothesis is tested by using panel regression. The result shows SCP (Structure-Conduct-Performance) hypothesis is closely applied to Islamic and conventional banks because market concentration significantly influences profitability. RMP (Relative Market Power) hypothesis is also closely applied to Islamic and conventional banking, this indicates Indonesian banking has market power in determining prices and this condition makes the profit higher. RES (Relative Efficiency Structure) and SES (Scale Efficiency Structure) hypothesis do not exist in both conventional and Islamic banks because x-efficiency and scale efficiency do not affect profitability, concentration, and  market share simultaneously. Market power and efficiency researches are commonly conducted in conventional banking, however there are only a few research in Islamic banking area. The novelty of this study is the comparison between conventional and Islamic banking in the term of market structure and efficiency.

scholarly journals ANALISIS EFISIENSI BANK UMUM SYARIAH DEVISA DI INDONESIA DENGAN METODE DATA ENVELOPMENT ANALYSIS STUDI PADA BANK MUAMALAT INDONESIA DAN BANK SYARIAH MANDIRI

2013 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Helmi Haris ◽  
Nuning Sri Hastuti
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Financial Ratio ◽  
Operating Income ◽  
Personnel Costs ◽  
Input And Output ◽  
Dea Method ◽  
Input Variables

Performance is one of the indicators of efficiency in a firm including Islamic banks. Performance measurament commonly done by Islamic banks using financial ratio. However performance measurament by using financial ratio can’t show the condition of Islamic banks truthfully. Data Envelopment Analysis (DEA) method can overcome restrictiveness of performance measurament which able to handle many input and output. DEA method is a linier programming which aim to maximize input and output. This study aims to aware and analyze financial performance of Islamic commercial bank with DEA method in period 2008-2011. The sample of two Islamic commercial bank: Bank Muamalat Indonesia and Bank Syariah Mandiri. This study uses input variables consist of deposits, assets, and personnel costs as well as using a variable output which comprises the amount of financing and operating income. These results indicate that Islamic commercial bank foreign exchange continue to have 100 percentefficiency is a Bank Muamalat Indonesia over a period of observation, while Bank Syariah Mandiri has 100 percent efficiency in Maret 2008, September 2008, Desember 2008, Juni 2009, September 2009, Desember 2009, September 2010, Desember 2010, Maret 2011, Juni 2011, September 2011 dan Desember 2011

scholarly journals COMPARATIVE ANALYSIS OF THE EFFICIENCY OF ISLAMIC BANKING IN INDONESIA BEFORE AND DURING COVID-19 PANDEMIC

2021 ◽  
Vol 3 (9) ◽  
pp. 277-287
Author(s):  
Safira Khoirunnisa ◽  
Arson Aliludin
Keyword(s):  
Business Performance ◽  
Banking Industry ◽  
Efficiency Score ◽  
Third Party ◽  
Scale Model ◽  
Islamic Banking ◽  
Past Century ◽  
Islamic Banks ◽  
Operating Income ◽  
Significant Difference

In 2019, COVID-19 starts to become a global emergence and keeps spreading all over the world. It has begun to enter Indonesia in February 2020 and has developed the social restriction and lockdown policy that leads to the decline in the economy. In contrast, the Islamic banking industry has escalated marginally in the past century. As a business entity, Islamic Banking has to maintain its business performance, one of which is by measuring the efficiency of the bank. The aim of this study is to analyse whether the Islamic Banking industry is disrupted by the occurrence of the COVID-19 pandemic, by measuring the efficiency of Islamic Banking. This study uses the Data Envelopment Analysis method with Variable Return to Scale model in output orientation. The variables used are based on the Intermediation approach which are Third Party Funds with Total Assets for the input, and Financing with Operating Income for the output. The samples are from all of the Islamic Banks in Indonesia in 2019-2021 except PT Bank Net Indonesia Syariah (total of 13). After calculating the efficiency, to see whether there is a difference between the Islamic Banks' efficiency before and during the COVID-19 pandemic, the Kolmogorov-Smirnov and Mann-Whitney U Test are used. The result of this study is that the Islamic banks in Indonesia have not been efficient both before and during the COVID-19 Pandemic, with a score of 68,12% for before and 69,64% for during pandemic. Moreover, the correlation analysis using the Mann-Whitney U test result indicates that the efficiency score before and during the COVID-19 pandemic has no significant difference. Hence, this illustrates that the occurrence of the COVID-19 pandemic didn’t affect the Islamic Banking industry in Indonesia, particularly on their efficiency.

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