The Efficiency Analysis of Islamic Commercial Banks Using a Two-Stage Data Analysis Method

Efficiency Analysis

Authors

  • Tri Annisya Fakultas Ekonomi dan Bisnis Islam
  • Nurbaiti Nurbaiti North Sumatra State Islamic University, Indonesia

DOI:

https://doi.org/10.30993/tifbr.v16i2.295

Abstract

A measure of company efficiency is also commonly used in banking. The DEA (Data Envelopment Analysis) method, which compares the input and output, is a mathematical program optimization method. This study investigates the efficiency level of Islamic banks in Indonesia from 2018 to 2021. It examines the role of capital and liquidity and their impact on Islamic banking efficiency. The quantitative methods used were nonparametric methods (DEA) and parametric methods using Tobit regression methods to examine capital and liquidity effects. The results show that Indonesia's Islamic Commercial Bank (BUS) is not operating effectively, according to the DEA's average efficiency score of 0.911 from 2018 to 2021. Furthermore, the findings suggest that capital and liquidity can improve the efficiency of Indonesian Islamic commercial banks.

Keywords: Efficiency, Islamic Commercial, Two Stage DEA, Tobit Model

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Published

2023-02-17

How to Cite

Annisya, T., & Nurbaiti, N. (2023). The Efficiency Analysis of Islamic Commercial Banks Using a Two-Stage Data Analysis Method: Efficiency Analysis . Tazkia Islamic Finance and Business Review, 16(2). https://doi.org/10.30993/tifbr.v16i2.295

Issue

Vol. 16 No. 2 (2022): Resilience (2)

Section

Articles

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Tazkia Islamic Finance and Business Review (TIFBR) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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