Intertemporal Efficiency Analysis on Indonesia Islamic Banks: A Window DEA Approach
Abstract
Introduction to The Problem:Â Measurement of the level of efficiency of Islamic banks in Indonesia is widely carried out. But almost no one has done research with the DEA window analysis approach.
Purpose/Objective Study:Â This paper aims to measure the efficiency of Islamic banks in Indonesia
Design/Methodology/Approach: – Using Data Envelopment Analysis (DEA) method and window DEA
Findings:Â This research shows that the efficiency of Islamic banks that included in observations from 2011-2016 fluctuated with a mean value of 63 percent. From the perspective of efficiency stability analysis through several summary statistics such as standard deviation (SD), Long Distance per Window (LDW), Long Distance per Period (LDP) and Long Distance per Year (LDY), the relatively stable Islamic bank efficiency value is Bank SyariahMandiri (BSM) and BCA Syariah.
Keywords
Full Text:
PDFReferences
Asmild, M., Paradi, J.C., Aggarwall, V., and Schaffnit, C. (2004), “Combining DEA window analysis with the malmquist index approach in a study of the Canadian banking industryâ€, Journal of Productivity Analysis Vol. 21, pp. 67-89.
Bergendahl, G. (1998), “DEA and benchmarks: An application to Nordic banksâ€, Annals of Operations Research Vol. 82, pp. 233-249.
Chung, S.H., Lee, A.H.I., Kang, H.Y., and Lai, C.W. (2008), “A DEA window analysis on the product family mix selection for a semiconductor fabricatorâ€, Expert Systems with Applications Vol. 35, pp. 379-388.
Cullinane, K. and Wang, T. (2010), “The efficiency analysis of container port production using DEA panel data approachesâ€, Operational Research Spectrum Vol. 32, pp. 717-738.
Dastgir, M., Momeni, M., Daneshvar, S., and Sarokolaei, M.A. (2012), “Analyzing financial statements by using window data envelopment analysis model (output oriented BCC): Evidence from Iranâ€, Journal of Basic and Applied Scientific Research, Vol. 2, No. 12, pp. 49-55.
Farrell, M.L. (1957). “The Measurement of Productive Efficiencyâ€, Journal of The Royal Statistical Society, 120, p.253-281.
Hemmasi, A., Talaeipour, M., Khadami, H.E., Farzipoor, R.S., and Pourmousa, S.H. (2011), “Using DEA window analysis for performance evaluation of Iranian wood panels industryâ€, African Journal of Agricultural Research, Vol. 6, No. 7, pp. 1802-1806.
Islamic Banker Association.(2017). Global Islamic Finance Report 2017.
Jia, T. and Yuan, H. (2017), “The application of DEA window analysis in the assessment of influence on operational efficiencies after the establishment of branched hospitalsâ€, Health Services Research Vol. 17, pp. 265.
Kamarudin, F., Sufian, F., and Nassir, A.M. (2016). “Global financial crisis, ownership and bank profit efficiency in the Bangladesh’s state owned and private commercial banksâ€, Contaduria y Administracion, Vol. 61, pp.705-745.
Kisielewska, M., Guzowska, M., Nellis, J.G., and Zarzecki, D. (2005), “Polish banking industry efficiency: DEA window analysis approachâ€, International Journal of Banking and Finance, Vol. 3, Issue 1, pp. 15-31.
Klopp, G. (1985), “The analysis of the efficiency of production system with multiple inputs and outputsâ€, Ph.D thesis at University of Illinois Chicago, Industrial and Systems Engineering College, USA.
Mahadevan, R. (2002), “A DEA approach to understanding the productivity growth of Malaysia’s manufacturing industriesâ€, Asia Pacific Journal of Management Vol. 19, pp. 587-600.
Maidamisa, A.A., Ahmad, R., and Ismail, A.A.M. (2012), “A comparative analysis of window width selection technique in data envelopment analysisâ€, International Journal of Computer Applications, Vol. 41, No. 5, pp. 21-26.
Nurfalah, I., Rusydiana, A.S., Laila, N., and Cahyono, E.F. (2018), “Early warning to banking crises in the dual financial system in Indonesia: The markov switching approachâ€, JKAU: Islamic Economics, Vol.31, No.2, pp.133-156.
Oscar, Yazar (2008), Health Care Benchmarking and Performance Evaluation: An Assessment using Data Envelopment Analysis. Springer, Newton MA.
Otoritas Jasa Keuangan. (2018). Statistik Perbankan Syariah Indonesia Juli Tahun 2018.
Ozdemir, Asli. (2013). “Integrating analytic network process and data envelopment analysis for efficiency measurement of Turkish commercial banksâ€. Banks and Bank Systems Volume 8 issue 2, 2013.Pjevcevic, D., Radonjic, A., Hrle, Z., and Colic, V. (2012), “DEA window analysis for measuring port efficiencies in Serbiaâ€, Traffic Management Review, Vol. 24, No. 1, pp. 63-72.
Rani, L., Rusydiana, A., and Widiastuti, T.(2017). “Comparative analysis of Islamic bank’s productivity and conventional bank’s in Indonesia period 2008-2016â€. In1st International Conference on Islamic Economics, Business and Philanthropy (ICIEBP 2017), pp. 118-123.
Repkova, Iveta. (2014), “Efficiency of the Slovak commercial banks applying the DEA window analysisâ€, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, Vol. 8, No. 5, pp. 1342-1347.
Rusydiana, Aam S. (2018a). “Indeks malmquist untuk pengukuran efisiensi dan produktivitas bank syariah di Indonesiaâ€, Jurnal Ekonomi dan Pembangunan LIPI, Vol.26, No.1, pp.47-58.
Rusydiana, Aam S.(2018b). “Efisiensi dan stabilitas bank umum syariah di Indonesiaâ€. Jurnal Akuntabilitas, Vol 11 No 2, pp.203-222.
Rusydiana, Aam S.(2016). “Analisis masalah pengembangan perbankan syariah di Indonesia: Aplikasi metode analytic network processâ€. Esensi: Jurnal Bisnis dan Manajemen, Vol.6, No.2, pp.237-246.
Rusydiana, Aam S., and Yulizar D. Sanrego, (2018). “Mesuring the performance of Islamic banking in Indonesia: An application of Maslahah efficiency quadrant (MEQ)â€. Journal of Monetary Economics and Finance, Vol 3 Special Issue, pp.103-130.
Rusydiana, Aam S., and Irman Firmansyah, (2017). “Efficiency versus Maqasid sharia index: An application on Indonesia Islamic bankâ€. Shirkah Journal of Economics and Business, Vol 2 No 2, 2017.
Shahooth, Khalid & Battall, Hussien. (2006), “Data envelopment analysis and window analysis in measuring and analyzing the relative cost efficiency of 24 Islamic banking institutionsâ€, Scientific Journal of Administrative Development, Vol.4, pp.134-156.
Shahreki, Javad, Nazar Dahmardeh and Mohammad Ali Ghasemi. (2012). “Efficiency Evaluation Bank Sepah Branches in Sistan and Baluchestan Province Using Data Envelopment Analysisâ€. Interdisciplinary Journal of Contemporary Research in Business Vol. 4 No. 2, June 2012.
Shawtari, F.A., Ariff, M., and Razak, S.H.A. (2015), “Efficiency assessment of banking sector in Yemen using data envelopment window analysis: A comparative analysis of Islamic and conventional banksâ€, Benchmarking: An International Journal, Vol. 22, Issue 6, pp. 1115-1140.
Sufian, F. and Majid, M.Z.A. (2007), “Deregulation, consolidation and banks efficiency in Singapore: Evidence from event study window approach and tobit analysisâ€, International Review on EconomicsVol. 54, pp. 261-283.
Sufian, F. (2007), “Trends in the efficiency of Singapore’s commercial banking groups: A non-stochastic frontier DEA window analysis approachâ€, International Journal of Productivity and Performance Management, Vol. 56, Issue 2, pp. 99-136.
Tatje, E.G., and Lovell, C.A.K. (1997), “A DEA-based analysis of productivity change and intertemporal managerial performanceâ€, Annals of Operations Research Vol. 73, pp. 177-189.
Tsolas, Ioannis E. and Dimitris I. Giokas. (2012). “Bank branch efficiency evaluation by means of least absolute deviations and DEAâ€. Managerial FinanceVol 38 No. 8, 2012.
Tulkens, H., and vanden Eeckaut, P. (1995), “Nonparametric efficiency, progress and regress measures for panel-data: Methodological aspectsâ€, European Journal of Operational Research, Vol. 80, No.3, pp.474-499.
Weng, S.J., Wu, T., Blackhurst, J., and Mackulak, G. (2009), “An extended DEA model for hospital performance evaluation and improvementâ€, Health Service Outcomes Research MethodVol. 9, pp. 39-53.
Zimkova, E. (2014), “Window analysis of super-efficiency change: Case of the Slovak banking systemâ€, Proceedings of International Scientific Conference, Poland 27-31 August 2014, pp. 294-300.
DOI: https://doi.org/10.37058/jes.v8i1.6651
Refbacks
- There are currently no refbacks.
Journal index by:
This work is licensed under a Creative Commons Attribution 4.0 International License.Â