EFISIENSI PERBANKAN BUKU 4 SEBELUM MASA PANDEMI

Abstract

This study aims to look at the level of banking efficiency in Indonesia from 2010 to 2018. The banking industry in this study is represented by banks in the category BUKU 4. The selection of banks with the highest category issued by the Financial Services Authority with the basic premise that banks in that category are the bank that has the best performance in Indonesia. This research used the Data Envelopment Analysis (DEA) approach with the consideration that this approach can accommodate the use of input variables that are more than one unit and will produce a calculation of the level of relative efficiency. The input variables used in this study were labour costs and third party funding costs. Output variables used in this study were the number of loans that can be distributed, interest income and non-interest income from each bank included in this study. The results of this research indicated that banking industry in Indonesia show efficient performance. In the observation period, there were only two banks that experienced inefficient conditions, namely Bank Central Asia and Bank Negara Indonesia. Both banks are not efficient in only one period.

Keywords: Banking, Efficiency, Data Envelopment Analysis