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http://dx.doi.org/10.13106/jafeb.2021.vol8.no4.0849

Financial Reforms and Technical Efficiency: A Case Study of Islamic Commercial Banks in Indonesia  

HERSUGONDO, Hersugondo (Faculty of Economics and Business, Diponegoro University)
WAHYUDI, Sugeng (Faculty of Economics and Business, Diponegoro University)
LAKSANA, Rio Dhani (Faculty of Economics and Business, Jenderal Soedirman University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.4, 2021 , pp. 849-855 More about this Journal
Abstract
The purpose of this study is to analyze and compare Islamic commercial banks and Islamic banking units with the stochastic frontier analysis (SFA) method during 2014-2018. The data in research using Islamic commercial banks and Islamic banking units. There are 10 Islamic commercial banks and 5 Islamic banking units that meet the criteria of purposive sampling. The calculation of efficiency level using the SFA method with the function of production shows that Islamic commercial banks and Islamic banking units always experience an increase in efficiency every year with the average level of efficiency of Islamic commercial banks being 0.43994, while the average rate of efficiency of Islamic banking units is slightly higher at 0.47654. This shows that Islamic banking units are slightly more optimal in generating total financing in the period 2010-2014. The test results using Independent Sample T-Test can be concluded that there is no difference in the efficiency value between Islamic commercial banks and Islamic banking units. Operating costs are not significant and have a positive effect on the total financing; total assets have a significant effect and a positive impact on total financing; labor costs are not significant and have a negative effect on total financing.
Keywords
Stochastic Frontier Approach; Operating Costs; Labor Costs; Financing; Total Asset;
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