Measuring the Performance of Islamic Banking in Indonesia: An Application of Maslahah-Efficiency Quadrant (Meq)

Rusydiana, Aam Slamet; Sanrego, Yulizar D.

doi:10.21098/jimf.v3i0.909

Cited by 36 publications

(41 citation statements)

References 2 publications

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“…In assessing efficiency level, Data Envelopment Analysis (DEA) is relatively used more frequently to measure the level of technical efficiency and economies of scale of the banking industry and other financial institutions. Such an analysis is consistent with the research conducted by Rani et al (2017), Kamarudin et al (2016); Ozdemir (2013); Shahreki (2012); and Tsolas and Dimitris (2012), as well as Rusydiana (2018aRusydiana ( , 2018b, Rusydiana & Sanrego (2018), and Rusydiana & Firmansyah (2017).…”

Section: Introduction 11 Backgroundsupporting

confidence: 90%

Financial and Social Efficiency on Indonesian Islamic Banks

Rusydiana¹,

Marlina²

2019

JIMF

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This paper explores financial and social efficiency in one assessment framework. Inorder to measure efficiency level of Islamic Banking Industry, this study uses DataEnvelopment Analysis (DEA) and Free Disposal Hull (FDH) methods. The resultsshow that the level of financial efficiency of Islamic banks in Indonesia from 2013 to2018 tends to decrease. On the contrary, the level of social efficiency of Islamic banksin Indonesia has a tendency to increase. Furthermore, the value of social efficiency ofIslamic banks in Indonesia was relatively lower compared to the value of financialefficiency. Within the Financial-Social Efficiency Quadrant framework, the studyclassified two Islamic banks in quadrant 1, three in quadrant 2, two in quadrant 3,and four in quadrant 4. It is imperative for Islamic banks that are in the low level of‘social efficiency’ to develop a policy to keep in line with the five factors of maqashidsharia apart of maintaining efficiency in order to reach maslahah. For the regulators,the social efficiency measurement framework could be an alternative in consideringIslamic bank performance beyond financial efficiency.

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Section: Introduction 11 Backgroundsupporting

confidence: 90%

Financial and Social Efficiency on Indonesian Islamic Banks

Rusydiana¹,

Marlina²

2019

JIMF

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“…There also several other studies on Islamic bank in Indonesia. For example, research conducted by Rusydiana and Sanrego (2018) and Rusydiana and Firmansyah (2017) uses the maslahah efficiency framework to evaluate the performance of an Islamic bank. Rusydiana (2018) tries to measure the productivity of Islamic bank in Indonesia, and Rusydiana and Alparisi (2016) have taken measurement of Islamic bank performance in Indonesia using maqasid index and profitability.…”

Section: Previous Studiesmentioning

confidence: 99%

Spin Off Policy of Sharia Bank: Is It Profitable?

Rusydiana¹,

Devi

Hasib

et al. 2019

Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah

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According to Law no. 21 Year 2008, the Sharia Business Unit (SBU) owned by a Conventional Commercial Bank (CCB) is required to separate from its Parent Bank before year 2023. Some Sharia Business Units have initiated a separation step from Conventional Commercial Bank. On the other hand, they are required to keep the level of efficiency in running its business operations. This paper is intended to analyze the efficiency level of Sharia Business Units that have separated from its parent and then compare whether there is difference of efficiency level between before and after separation. The method used is Data Envelopment Analysis (DEA) and Paired Sample t-Test. The results show that based on the total average efficiency of all sharia banks spin off (in this case four sharia banks namely BNI Sharia, BRI Sharia, BJB Sharia and Bukopin Sharia Bank), there occur a decrease in efficiency technically and also pure the technical itself in sharia banks starting from before and after the spin off. This can be read because in the early periods of spin off there was a cost adjustment on the shariah bank spin off. Sharia banks require a 'weaning' from their parents. Nevertheless, there is no statistically significant difference in efficiency levels between before and after the spin off. This should be a booster for other Sharia Business Units to take the decision to spin off immediately, of course, accompanied by careful and prudent planning and implementation.

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“…The research related to other Sharia Banks are also done by Effendi (2016). The other studies using DEA on islamic economics and finance researches has done by Rusydiana (2018) also Rusydiana and Sanrego (2018).…”

Section: The Previous Studymentioning

confidence: 99%

Measuring The Efficiency of Pesantren Cooperatives: Evidence in Indonesia

Rahayu¹,

Rusydiana

2018

GReviewIEB

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The Cooperative (Koperasi) as a non-Bank financial institution has the purpose of improving the welfare of its members as Koperasi Hidmat and the staffs of Latifah Mubarokiyah Koperasi Ponses Suryalaya that have been since decades ago. Over time, the ideal cooperative can show a significant development and increase the welfare of its members. This study aims to determine the efficiency of cooperative as a benchmark, because by known the performance value of a cooperation, it will known the weeknesses and advantages so that it can be improved the weaknesses and maintain the advantages.The method used is apply Data Envelopment Analysis (DEA). Inputs used from principal savings, mandatory savings, and fixed assets while the output used from savings in the cooperative, savings in other cooperative and SHU. As for result of this research indicates there are 9 perfect efficient DMUs (100 %) and inefficient DMU is 11 DMUs, consisting of 7 (IRS conditions) and 4 (DRS condition). The most inefficient cooperative is Koperasi Hidmat (2014) of 30.66% efficiency level.Kopkar IAILM is able to maintain its grade efficiency level from 2009 to 2015 when compared to other DMUs cooperatives in the observation, except in 2014. The calculation of efficiency level in this research is relative and it is not absolute, so that it is possible when the cooperative sample is added or the observation year is expanded, so it will get different result. The necessity of any cooperative or BMT based on Pondok Pesantren to make annual financial statements in order to increase accountability and transparency of fund management.

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Measuring the Performance of Islamic Banking in Indonesia: An Application of Maslahah-Efficiency Quadrant (Meq)

Cited by 36 publications

References 2 publications

Financial and Social Efficiency on Indonesian Islamic Banks

Financial and Social Efficiency on Indonesian Islamic Banks

Spin Off Policy of Sharia Bank: Is It Profitable?

Measuring The Efficiency of Pesantren Cooperatives: Evidence in Indonesia

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