Comparative Study of Efficiency of Sharia Bank and Conventional Bank with Data Envelopment Analysis Method

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 8

Year of Publication : 2021

Authors : I Gusti Ayu Putu Jayanthi Prihartini, Henny Rahyuda

10.14445/23939125/IJEMS-V8I8P106

How to Cite?

I Gusti Ayu Putu Jayanthi Prihartini, Henny Rahyuda, "Comparative Study of Efficiency of Sharia Bank and Conventional Bank with Data Envelopment Analysis Method," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 8, pp. 33-39, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I8P106

Abstract:

Efficiency is an indicator used to measure the overall performance of a bank's activities. A bank is said to be efficient if it is able to produce predetermined targets with minimal costs. Banking efficiency is an indicator in measuring the overall performance of banking activities. The purpose of this study is to determine: (1) differences in capital adequacy in Sharia banks and conventional banks; (2) differences in liquidity in Sharia banks and conventional banks; (3) differences in asset quality in Sharia banks and conventional banks: (4) differences in efficiency between Sharia banks and conventional banks. The data used in this study is quantitative data for the 2015-2019 period, which is sourced from the annual financial reports published by companies listed on the Indonesia Stock Exchange. This research uses Data Envelopment Analysis (DEA) analysis technique and Paired Sample T-Test with Wilcoxon test. The results show that there is no difference between capital adequacy and liquidity between Sharia banks and conventional banks. While there are differences in asset quality, Bank efficiency seen from the capital adequacy and liquidity of Sharia banks is more efficient, while the variables of asset quality and operational efficiency ratio conventional banks are more efficient.

Keywords:

Bank Efficiency, Capital Adequacy Ratio, Non-Performing Loans, Loan to Deposit Ratio.

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