Determinants of Sharia Banks’ Efficiency In Indonesia: Panel Data Analysis

Khalifany Ash Shidiqi, Aulifah Rachmawati

DOI: https://doi.org/10.23917/jep.v19i2.6405

Abstract

Nowadays, the development of Sharia Banks (SB) in Indonesia showed positive results. However, the development of SB is still slow because their competitiveness levels are far from the conventional banks, which is proven by the small amount of market shares. One of the efforts to gain competitiveness is by maintaining efficiency that it can give magnificent boost to the development. This paper aims to estimate factors that are affecting efficiency of Sharia banks in Indonesia. The use of panel data of 11 public SB from 2012 – 2016 and random effect regression illustrate how CAR, ROA, ROE, NPF, FDR and Number of Branches (NB) affect efficiency. In particular, we use Operating Expense Ratio (OER) to determine the efficiency level of Sharia Banks. The estimation finds that ROA, FDR, NB have reverse correlation toward OER, NPF has positive effect, and CAR as well as ROE are not significantly affect OER.

Keywords

Efficiency, OER, Sharia Bank, Panel Data, Random Effect Regression.

Full Text:

PDF

References

Ahmad, N.H., and Noor, M.A.N.M. (2011). The Determinants Efficiency and Profitability of World Islamic Banks. 2010 International Conference on E-Business, Management and Economics, Vol 3: IACSIT Press, Hong Kong. Retrived from www.ipedr.com/vol3/47-M10013.pdf on September 2017 11.13.

Ariyani, D. (2010). Analisis Pengaruh CAR, FDR, BOPO Dan NPF Terhadap Profitabilitas Pada PT. Bank Muamalat Indonesia Tbk. Al Iqtishad Journal of Islamic Economics, Vol. 2, No. 1.

Badan Pusat Statistik (2010). Hasil Sensus Penduduk 2010: Kewarganegaraan, Suku Bangsa, Agama, dan Bahasa Sehari-hari Penduduk Indonesia. Jakarta, Indonesia.

Baltagi, B. H. (2008). Econometrics Analysis of Panel Data. Chichester, UK: John Wiley & Sons.

Bank Central Asia Syariah, Financial Statements. Retrieved from http://www.bcasyariah.co.id/ on October 31, 2017 9:47 pm.

Bank Jabar Banten Syariah, Financial Statements. Retrieved from http://bjbsyariah.co.id/ on October 31, 2017 11:28 pm.

Bank Mega Syariah, Financial Statements. Retrieved from http://www.megasyariah.co.id/ on 2 November 2017 9:21 pm.

Bank Muamalat Indonesia, Financial Statements. Retrieved from http://www.bankmuamalat.co.id/ on October 31, 2017 12:23 pm.

Bank Negara Indonesia Syariah, Financial Statements. Retrieved from http://www.bnisyariah.co.id/ on October 31, 2017 9:41 pm.

Bank Panin Syariah. Financial Report. Accessed from https://www.paninbanksyariah.co.id/ on October 31, 2017 12:48 pm.

Bank Rakyat Indonesia Syariah, Financial Statements. Retrieved from http://www.brisyariah.co.id/ on October 31, 2017 11:04 pm.

Bank Syariah Bukopin, Financial Statements. Retrieved from http://www.syariahbukopin.co.id/ on November 1, 2017 8:53 pm.

Bank Syariah Mandiri, Financial Statements. Retrieved from https://www.syariahmandiri.co.id/ on November 1, 2017 9:04 pm.

Bank Victoria Syariah, Financial Report. Accessed from http://bankvictoriasyariah.co.id/ on November 1, 2017 9:08 pm.

Bisri, B. (2016). Pengukuran Tingkat Efisiensi Bank Umum Syariah Di Indonesia dan Determinannya. Moneter-Jurnal Akuntansi dan Keuangan. Vol. 3, No. 2.

Effendi, Y. (2016). Measuring Efficiency of the Indonesian Islamic Banks. Economic and Financial Studies, 20(2), 133-148.

Farandy, A.R., Suwito, D.A., & Dabutar, L.K. (2017). Efficiency of Islamic Banks in Indonesia: Data Envelopment Analysis. International Journal of Economics, Management and Accounting, 25(2), 337.

Fathony, M. (2012). Estimasi Dan Faktor-Faktor Yang Memengaruhi Efisiensi Bank Domestik Dan Asing Di Indonesia. Jurnal Keuangan dan Perbankan, 16(2).

Financial Services Authority Regulation number 6 / POJK No.03 / 2016. Indonesia

Financial Services Authority. (2017). Roadmap Keuangan Syariah Indonesia. Accessed from http://www.ojk.go.id/id/kanal/syariah/berita-dan-kegiatan/publikasi/Pages/Roadmap-Pengembangan-Keuangan-Syariah-Indonesia-2017-2019.aspx on October 19, 2017 13.30.

Financial Services Authority. Statistik Perbankan Syariah. Retrived from https://www.ojk.go.id/id/kanal/syariah/data-dan-statistik/statistik-perbankan-syariah/Default.aspx on October 20, 2017 14.30.

Firdaus, MF, & Hosen, MN (2013). Efisiensi Bank Umum Syariah Menggunakan Pendekatan Two-Stage Data Envelopment Analysis. Bulletin of Monetary Economics and Banking, 16(2), 150.

Havidz, S.A.H., Jianmu, Y., Aima, M.H., & Ali, H. (2017). Employing Technical and Scale Efficiency Data Envelopment Analysis: Empirical Evidence from Public Islamic Banks in Indonesia. International Journal of Innovation in Application or Engineering and Management. Volume 6 No. 8.

Hidayati, N., Siregar, H., & Pasaribu, SH (2017). Determinant of Efficiency of the Islamic Banking in Indonesia. Bulletin of Monetary Economics and Banking, 20(1), 29-48.

Jackson, PM, & Fethi, MD. (2000). Evaluating the efficiency of Turkish commercial banks: An application of DEA and Tobit Analysis. Accessed from https://pdfs.semanticscholar.org/bb67/deb5d904234e5cca3bfeddbd1ceb122bf68e.pdf. On 2 November 2017 15:34 pm.

Lestari, A. (2015). Efisiensi Kinerja Keuangan Badan Amil Zakat Daerah (BAZDA): Pendekatan Data Envelopment Analysis (DEA). Jurnal Ekonomi & Studi Pembangunan, 16(2), 177-187.

Lutfiana, R. H., & Yulianto, A. (2015). Determinan Tingkat Efisiensi Bank Umum Syaria Di Indonesia (Pendekatan Two Stage Dea). Accounting Analysis Journal, 4(3).

Masita, G., & Subekti, I. (2013). Determinan Efisiensi Perbankan Di Indonesia Berdasarkan Data Envelopment Analyis (DEA). Jurnal Ilmiah Mahasiswa FEB, 2(2).

Maybank Syariah, Financial Report. Accessed from http://www.maybanksyariah.co.id/ on November 2, 2017 17:46 pm.

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.

Mu’izzuddin, M., & Isnurhadi, I. (2013). Islamic Banking Efficiency in Indonesia; Two-Stage Data Envelopment Analysis Approach. Accessed from http://eprints.unsri.ac.id/3481.On November 2, 2017 7:11 pm.

Pew Research Centre (2017). Islam will be the 'biggest religion' in 2075. Accessed from http://www.bbc.com/indonesia/majalah-39510081 on November 27, 2017.

Pambuko, B. Zulfikar. (2016). Determinan Tingkat Efisiensi Perbankan Syariah Di Indonesia: Two Stages Data Envelopment Analysis. Cakrawala: Jurnal Studi Islam. XI. 178-194.

Pratikto, H., & Sugianto, I. (2011). Kinerja Efisiensi Bank Syariah Sebelum dan Sesudah Krisis Global Berdasarkan Data Envelopment Analysis. Accessed from http://fe.um.ac.id/wp-content/uploads/2009/10/4-Heri-Pratikto.pdf on November 23, 2017.

Rozzani, N., & Rahman, R. A. (2013). Determinants of bank efficiency: Conventional versus Islamic. International Journal of Business and Management, 8(14), 98.

Rusydiana A.S. (2013). Data Envelopment Analysis Untuk Mengukur Tingkat Efisiensi Organisasi Pengelola Zakat. Accessed from http://www.academia.edu/23251047/DATA_ENVELOPMENT_ANALYSIS_UNTUK_MENGUKUR_TINGKAT_EFISIENSI_ORGANISASI_PENGELOLA_ZAKAT on January 21, 2018.

Sardar, A., Azeem, MM, Ahmed, T., & Zafar, S. (2011). Islamic Banks: Efficiency and its Determinants in Pakistan. Islamic Studies, 423-434.

Subandi, & Ghozali, I. (2014). An Efficiency Determinant of Banking Industry in Indonesia. Research Journal of Finance and Accounting, 5(3).

Sufian, F., & Akbar Noor Mohamad Noor, M. (2009). The determinants of Islamic banks' efficiency changes: Empirical evidence from the MENA and Asian banking sectors. International Journal of Islamic and Middle Eastern Finance and Management,2(2), 120-138.

Weill, L. (2003). Banking Efficiency in Transition Economies. Economics of transition, 11(3), 569-592. Accessed from https://onlinelibrary.wiley.com/doi/full/10.1111/1468-0351.00155 on March 29, 2018 19.30 WIB

Wheelock, D., & Wilson, P. (1999). Technical Progress, Inefficiency, and Productivity Change in U.S. Banking, 1984-1993. Journal of Money, Credit and Banking, 31(2), 212-234.

Widiarti, A. W., Siregar, H., & Andati, T. (2015). The Determinants of Bank's Efficiency In Indonesia. Bulletin of Monetary Economics and Banking, 18(2), 129-156.

Article Metrics

Abstract view(s): 285 time(s)
PDF: 241 time(s)

Refbacks