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Growing Science » Decision Science Letters » Determinants of efficiency of Indonesian Islamic rural banks

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Decision Science Letters

ISSN 1929-5812 (Online) - ISSN 1929-5804 (Print)
Quarterly Publication
Volume 11 Issue 4 pp. 391-398 , 2022

Determinants of efficiency of Indonesian Islamic rural banks Pages 391-398 Right click to download the paper Download PDF

Authors: Endri Endri, Naning Fatmawatie, Sugianto Sugianto, Humairoh Humairoh, Mohammad Annas, Arjuna Wiwaha

DOI: 10.5267/j.dsl.2022.8.002

Keywords: Efficiency, Data Envelopment Analysis, Islamic Rural Banks, Indonesia

Abstract: The purpose of the study is to evaluate the efficiency of Islamic Rural Banks (BPRS) and analyze the factors that determine them using a two-stage approach to Data Envelopment Analysis (DEA). DEA in this study focuses on the production, intermediation, and inefficiency causes. This research was done on BPRS across Indonesia. The data were taken from a financial report for the 2013-2021 period. The source of the data was a publication from the Financial Services Authority of Indonesia. The data were analyzed using the non-parametric approach with a two-stage DEA method. The input variables were personnel costs, fixed assets, and third-party funds. The result shows that Revenue Sharing, ROA, and Growth have a significant positive effect on DEA. BOPO and inflation have a positive but insignificant effect on DEA. While NPF and FDR have negative but insignificant effects on DEA. Then CAR has a negative and not significant effect on DEA. It also shows that the variables of Revenue Sharing, NPF, ROA, CAR, FDR, BOPO growth, and inflation have a simultaneous effect on DEA.

How to cite this paper
Endri, E., Fatmawatie, N., Sugianto, S., Humairoh, H., Annas, M & Wiwaha, A. (2022). Determinants of efficiency of Indonesian Islamic rural banks.Decision Science Letters , 11(4), 391-398.

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Journal: Decision Science Letters | Year: 2022 | Volume: 11 | Issue: 4 | Views: 2073 | Reviews: 0

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