Efficiency analysis of sharia bank in Indonesia based on data envelopment analysis (DEA)
Keywords:
data envelopment analysis, efficiency of Islamic, Islamic bankAbstract
This study aimed to determine the efficiency of Islamic banks in Indonesia using the 2015-2019 data envelopment analysis (DEA) method. The population in this study were Islamic banks in Indonesia in the 2015-2019 period, which amounted to 189 banks consisting of 14 Sharia Commercial Banks (SCB), 20 Sharia Business Units (SBU), and 164 Sharia People's Financing Banks (SPFB). The sample used in this study was 6 Islamic banks that published financial statements during 2015-2019, with several criteria for determining the sample. Based on the calculation of the average efficiency level of all Islamic banks in this study, in 2015, it was 86.9%, in 2016 it was 93.3%, in 2017, it was 97.2%, in 2018, it was 87.8%, and in 2019, it was 93.6%. Thus, the average level of efficiency at Islamic Commercial Banks in Indonesia fluctuated during the study period. Increasing the level of efficiency can be done by increasing or reducing the amount of input and output of each Islamic Bank following the input target or output target based on the results of calculations in this study every year and maintaining the input and output targets that have been 100% well achieved.
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