Determinants of Bank Effciency: Evidence from Regional Development Banks

Lutfi, Lutfi; Suyatno, Suyatno

doi:10.17576/jem-2019-5303-5

Cited by 2 publications

(1 citation statement)

References 61 publications

(113 reference statements)

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“…Efficiency is a healthy indicator of banking performance (Lutfi & Suyatno, 2019). Banks that have good performance tend to be able banks.…”

Section: Introductionmentioning

confidence: 99%

Cost Efficiency in The Banking Industry

Khalifaturofi’ah¹

2022

JIKA

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This study aims to analyze cost efficiency in conventional banking. The data of this study consists of 23 banks in Indonesia period 2009-2017. The research method is the Stochastic Frontier Approach (SFA) model. The results show that foreign exchange private banks are the most cost-efficient. State-owned commercial banks are not yet cost-efficient banks. Bank cost efficiency is determined by labor costs and interest costs. Higher labor costs and interest costs will increase the total cost of conventional banking. The results of this study will be useful for the banking industry to improve cost efficiency by controlling labor costs and interest costs. The implication of this research is that the government needs to improve cost efficiency at state-owned banks and reduce labor costs and interest costs with the aim of increasing banking cost efficiency. Keywords: Conventional bank; Cost Efficiency; Labor Cost; Interest Cost; Stochastic Frontier Approach Penelitian ini bertujuan untuk menganalisis efisiensi biaya pada perbankan konvensional. Data penelitian ini terdiri dari 23 bank di Indonesia periode 2009-2017. Metode penelitian yang digunakan adalah dengan menggunakan model Stochastic Frontier Approach (SFA). Temuan penelitian menunjukkan bahwa bank swasta devisa paling hemat biaya. Bank umum milik negara belum termasuk bank yang efisien biayanya. Efisiensi biaya bank ditentukan oleh biaya tenaga kerja dan biaya bunga. Biaya tenaga kerja dan biaya bunga yang lebih tinggi akan meningkatkan total biaya pada perbankan konvensional. Hasil dari penelitian ini akan berguna bagi industri perbankan untuk meningkatkan efisiensi biaya dengan mengendalikan biaya tenaga kerja dan biaya bunga. Implikasi dari penelitian ini adalah pemerintah perlu meningkatkan efisiensi biaya pada bank BUMN serta menekan biaya tenaga kerja dan biaya bunga. Kata Kunci: Bank Konvensional; Efisiensi Biaya; Beban Tenaga Kerja; Beban Bunga; Pendekatan Stochastic Frontier

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“…Efficiency is a healthy indicator of banking performance (Lutfi & Suyatno, 2019). Banks that have good performance tend to be able banks.…”

Section: Introductionmentioning

confidence: 99%

Cost Efficiency in The Banking Industry

Khalifaturofi’ah¹

2022

JIKA

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Measuring the efficiency of government-owned banks during the COVID-19 pandemic in the emerging economy

Ikhwan,

Thaker,

Thaker

2023

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This study aims to examine the technical efficiency of Indonesian government-owned banks, especially evaluating their performance during the COVID-19 pandemic. We used quarterly data ranging from the year 2019 to 2022 and a non-parametric approach known as a data envelopment analysis (DEA), and Tobit regression. Our findings show that Bank Rakyat Indonesia (BRI) and Bank Tabungan Nasional (BTN) are the most efficient and stable banks during the observation periods. In addition, the average efficiency trend shows a sharp decreasing trend in all banks from Q2 2020, the period when the COVID-19 pandemic began to spread in Indonesia. Furthermore, the Tobit regression result found that financial ratios — capital adequacy ratio (CAR), loan-to-deposit ratio (LDR), and return on assets (ROA) — have a significant positive impact to affect the efficiency level of the government-owned bank, whereas the bank’s size was found insignificant (Susamto et al., 2023; Ikhwan & Riani, 2022). The paper contributes to the body of knowledge by specifically focusing on measuring the relative efficiency of government-owned banks in Indonesia in the most recent period in addition to existing, which represents the period before and during the pandemic crisis, which would fill the gaps in the available literature.

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Determinants of Bank Effciency: Evidence from Regional Development Banks

Cited by 2 publications

References 61 publications

Cost Efficiency in The Banking Industry

Cost Efficiency in The Banking Industry

Measuring the efficiency of government-owned banks during the COVID-19 pandemic in the emerging economy

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