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http://dx.doi.org/10.13106/jafeb.2021.vol8.no1.741

Analysis of Bank Efficiency Between Conventional Banks and Regional Development Banks in Indonesia  

ABIDIN, Zaenal (Perbanas Institute)
PRABANTARIKSO, R.Mahelan (Sekolah Tinggi Ilmu Ekonomi Indonesia Banking School)
WARDHANI, Rhisya Ayu (Sekolah Tinggi Ilmu Ekonomi Indonesia Banking School)
ENDRI, Endri (Graduate Program, Universitas Mercu Buana)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.1, 2021 , pp. 741-750 More about this Journal
Abstract
The research aims to analyze the level of efficiency by grouping banks during the period 2017 - 2018 into category 1 and category 2 banks and then dividing them as Regional Development Banks (BPD) and Non-BPD Conventional Commercial Banks (BUK) within each category. The research objects are banks within the categories BPD and BUK comprised 18 BPDs and 35 BUKs. The research methodology uses 3 stages, first, using Data Envelopment Analysis (DEA) we measure the level of bank efficiency; second, using the Tobit regression model we evaluate the effect of financial performance on DEA efficiency, and third, using the Mann-Whitney test we determine whether there is a difference in the efficiency of category 1 and 2 banks. The results showed that there was a decrease in the efficiency of category 1 and 2 banks but on average, the efficiency of category 1 banks is higher than category 2 banks. The estimation results of the Tobit regression model show that only the ROA variable affects the efficiency level of category 1 banks, while category 2 banks are influenced by NPL and ROA variables. In the Mann-Whitney test, it was proven that there were differences in efficiency between BUK and BPD in category 1 and 2 banks.
Keywords
Conventional Banks; Data Envelopment Analysis; Efficiency; Regional Development Banks; Tobit Regression;
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