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 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 Islamic Banks vs. Conventional Banks in Bangladesh: A Comparative Study Based on its Efficiency in Operation

2020 ◽  
Vol 4 (1) ◽  
pp. 29-37 ◽  
Author(s):  
Faisal Ahmad
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Progress ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Productivity Index ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Factor Productivity ◽  
Conventional Banks ◽  
Better Than

The main purpose of this study is to make a comparison between Islamic banks (IBs) and Conventional banks (CBs) in Bangladesh based on its efficiency in operation. The Data Envelopment Analysis (DEA) is employed under CRS and VRS approach, which allows for the decomposition of efficiency into technical, allocated and cost efficiency. The study also measures changes in productivity over the time as a result of technical progress by employing the Malmquist Total Factor Productivity Index. The results explain that the technical efficiency of IBs is better than that of CBs, but allocated and cost efficiency (CE) of IBs are higher than CBs. In Bangladesh there are 62 commercial banks included 8 Islamic Banks that are regulated by Bangladesh Bank (BB).  

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.

scholarly journals Membandingkan Efisiensi Pembiayaan Bank Umum Syariah dan Bank Umum Konvensional di Indonesia Dengan Metode Data Envelopment Analysis (DEA)

2015 ◽  
Vol 2 (8) ◽  
pp. 673
Author(s):  
Ditta Feicyllia Sari ◽  
Noven Suprayogi
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Hypothesis Test ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Parametric Approach ◽  
Statistical Tool ◽  
Significant Difference ◽  
Conventional Banks ◽  
Conventional Bank

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

scholarly journals Cost efficiency of the Czech and Slovak banking sectors: an application of the data envelopment analysis

2016 ◽  
Author(s):  
Iveta Palecková
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Cost Efficient ◽  
The Cost ◽  
Variable Returns To Scale

The aim of the paper is to estimate the cost efficiency of the Czech and Slovak commercial banks within the period 2010-2014. For empirical analysis the Data Envelopment Analysis input-oriented model with variable returns to scale is applied on the data of the commercial banks. The intermediation approach is adopted to define the inputs and outputs. The Czech commercial banks are more cost efficient than Slovak commercial banks. The development of average cost efficiency is similar in the Czech and Slovak banking industry. The most efficient Czech banks are Ceská sporitelna and Sberbank in the Czech banking sector, the most efficient Slovak bank is Privatbanka with 100% efficiency.

Exploring the effect of online banking on bank performance using data envelopment analysis

2019 ◽  
Vol 27 (1) ◽  
pp. 137-165 ◽  
Author(s):  
Kwame Owusu Kwateng ◽  
Edna Edwina Osei-Wusu ◽  
Kofi Amanor
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Principal Component ◽  
Internet Banking ◽  
Bank Performance ◽  
Data Envelopment ◽  
Content Type ◽  
Banking Service ◽  
Using Data ◽  
And Cluster Analysis

Purpose Increased competition in the banking sector coupled with long queues in the banking hall has necessitated the introduction of internet banking among banks in Ghana. As a result, internet banking has attracted a great deal of attention from both academicians and practitioners. The purpose of this paper is to examine the effect of internet banking on the performance of banking institutions in Ghana. Design/methodology/approach In total, 20 banks in Ghana were selected from the Bank of Ghana website for the study. The financial information about the banks’ operations was retrieved from the financial statements of the respective banks for the end of the year 2016. The data envelopment analysis-bootstrap approach with principal component analysis and cluster analysis was used to estimate 49 models. Findings The findings of the study indicated that the integration of internet banking into traditional banking methods has led to superior bank performance in Ghana. It was observed that while the independent application of internet banking as a strategy to raise performance was not yielding higher returns due to the low patronage of internet services among banking consumers, its integration with possible traditional methods is widely observed among the top performers in the banking industry. Practical implications Traditional banking methods, integrated banking service strategies and the internet banking service-oriented strategy emerged as the main banking strategies among the banks. Originality/value Extant literature is quite silent on the effect of internet banking on bank performance in Africa. However, this paper is among the first significant attempts to examine the effect of internet banking on bank performance.

Modeling Efficiency Performance of Malaysian Commercial Banks Using Data Envelopment Analysis

2018 ◽  
Vol 24 (6) ◽  
pp. 4612-4618
Author(s):  
Norsyuhada Johan ◽  
Zalina Zahid ◽  
Siti Aida Sheikh Hussin
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Data Envelopment ◽  
Efficiency Performance ◽  
Using Data

scholarly journals Loan efficiency in the Visegrad countries

2015 ◽  
Vol 65 (s1) ◽  
pp. 161-181 ◽  
Author(s):  
Kristína Kočišová
Keyword(s):  
Data Envelopment Analysis ◽  
Financial Markets ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Data Envelopment ◽  
Average Efficiency ◽  
The Past ◽  
Lending Decisions ◽  
Using Data ◽  
Visegrád Countries

Financial markets in the Visegrad countries have undergone several changes in lending business over the past decade. This study evaluates the efficiency of the largest commercial banks by focusing on their lending decisions using Data Envelopment Analysis. First, we define the concept of efficiency, then we analyse loan efficiency between 2007 and 2013. The results indicate that average efficiency declined. When we studied the loan efficiency in each country separately, we found that Hungarian banks had the lowest efficiency while the highest efficiency was achieved mainly by Czech banks. The results of the study also suggest that efficiency is positively related to profitability and capital adequacy, and negatively related to the share of non-performing loans, which confirms the bad management hypothesis.

scholarly journals EFFICIENT COMPARISON OF THE TOP 10 LARGEST COMMERCIAL BANKS IN INDONESIA: DEA (DATA ENVELOPMENT ANALYSIS)

2021 ◽  
Vol 11 (3) ◽  
pp. 427
Author(s):  
Ari Christianti
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Banking Industry ◽  
Maximum Efficiency ◽  
Data Envelopment ◽  
Labor Costs ◽  
Banking Efficiency ◽  
Parametric Data ◽  
Fixed Assets ◽  
Using Data

Banking efficiency is very important in supporting the success of macro policies specifically, maintaining the sustainability of development that affects economic growth and social welfare. This study discusses the efficiency of commercial banks for the 2015-2019 period using data from the 10 largest commercial banks in Indonesia. The methodology used is non-parametric, Data Envelopment Analysis, to analyze technical efficiency. The results showed that 7 banks had a maximum efficiency level consistently during the study period and there were still 3 banks that did not reach the maximum efficiency but during certain periods or periods. Based on the results of the DEA, inefficient banks in a certain period can achieve maximum efficiency by reducing inputs such as labor costs, net fixed assets, and the number of deposits. This might be attributed that the competition in the banking industry and because not all inputs could be controlled by management, some large banks cannot maintain their level of efficiency consistently.

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