DEA Window Analysis of Indonesian Banking Industry Efficiency During COVID-19

Abstract

crises and inefficiency, particularly in the banking sector. As a result, policymakers need information comparing the efficiency of different types of banks so they can develop appropriate regulations. The purpose of this research is to measure and compare the intertemporal efficiency of Islamic and conventional banks in Indonesia using Data Envelopment Analysis and DEA window analysis. This study examines the stability and efficiency of the Indonesian Banking industry from 2015 to 2020, along with the years 2019 and 2020, which highlight the Covid-19 pandemic era. The results revealed that Islamic banking received a score of 0.66, higher than conventional banking's score of 0.59. However, both exhibit a similar pattern in which the average level of efficiency decreases during the Covid-19 pandemic. From the perspective of efficiency stability analysis through various summary statistics such as standard deviation (SD), Long Distance per Window (LDW), Long Distance per Period (LDP), and Long Distance per Year (LDY), BRI, BRI Syariah, and BTN have the most relatively stable efficiency values among Indonesian banks. This study found that from 2015 to 2020, BRI is the most stable and efficient bank in Indonesia. This study suggests that Indonesia's conventional and Islamic banking systems must maximize their available resources and advance their technological capabilities to increase productivity in special circumstances like the current Covid-19 pandemic.

Has Covid-19 Pandemic had an Impact on the Productivity of Indonesia Zakat Institutions?

“…The phenomenon of the Covid-19 pandemic at the end of 2019 until it spreads in Indonesia in early 2020 certainly has a global impact not only on the health sector but also the economic and social sectors of society, especially in the Amil Zakat Institution as a nonprofit institution that collects and distributes social funds (ZISWAF). Several studies that discuss covid-19 pandemic impact on Islamic financial institutions, for example, were carried out by Ikhwan (2022), Riani (2022), Rusydiana et al, (2022), Maulida (2022), andHerindar (2021). For this reason, the following analysis explains the productivity level of the Amil Zakat Institution in Indonesia before and during the Covid-19 pandemic.…”

Covid-19 Salgınının Ulaştırma ve Depolama Sektörü İşletmelerinin Maliyet Yönetim Etkinliğine Etkisinin İncelenmesi

“…Eryiğit and Polat (2022) examined the effect of the Covid-19 pandemic on the financial performance-based productivity of companies operating in the Information Technologies (IT) sector listed in the BIST using DEA method. While Sang (2022) used DEA approach to analyze the effect of the pandemic on the productivity of Vietnamese commercial banks, Riani (2022) used DEA to measure the pre-pandemic and pandemic-period efficiency of Islamic and traditional banks in Indonesia.…”

Intertemporal Social Efficiency on Indonesian Islamic Banks

“…Technically, this approach measures the level of technical efficiency and economies of scale of the banking industry and other financial institutions. Previous studies have been conducted by employing this approach such as Ozdemir (2013), Shahreki (2012), Tsolas and Dimitris (2012), Rani et al (2017), Kamarudin et al (2016 ), Rusydiana & Firmansyah (2017), Rusydiana (2018aRusydiana ( , 2018b, Ikhwan (2022), Riani (2022), Rusydiana & Sanrego (2018), among others.…”