Abdul Mongid
STIE Perbanas Surabaya

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Strategies to increase production efficiency in Indonesian Sharia commercial banks using Stochastic Frontier Approach (SFA) Pratystya Ika Wardhani; Abdul Mongid
Journal of Economics, Business, & Accountancy Ventura Vol 21, No 3 (2018): December 2018 - March 2019
Publisher : STIE Perbanas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v21i3.1597

Abstract

The purpose of this research is to examine the right strategy in increasing production efficiency in Sharia commercial banks in Indonesia. This research was conducted in two stages of testing. The first stage is estimating the level of production efficiency of Indonesian Islamic banks in 2010-2017 through the Stochastic Frontier Analysis (SFA) approach. The second stage uses Tobit regression to examine the relationship between the efficiency of production of sharia commercial banks with specific bank characteristics, including; LASSET, CAR, NPF, GCG, NOM and FDR. The results indicate that the level of production efficiency of sharia commercial banks is strongly influenced by several things. From the input side, optimization of DPK, PSC and LC components is needed to maximize production efficiency. This study also found that CAR (solvency performance), NPF (asset quality performance), NOM (profitability performance), and FDR (liquidity performance) greatly influenced variations in the efficiency of Indonesian Islamic banks. Improving the quality of financing supported by an increase in the operational system and the quality of human resources and began to concentrate on revenue sourced from services to be a solution that could be implied by Indonesian Islamic banks.
Accounting Data and Bank Future Failure: A Model for Indonesia Abdul Mongid
The Indonesian Journal of Accounting Research Vol 5, No 1 (2002): JRAI January 2002
Publisher : The Indonesian Journal of Accounting Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33312/ijar.68

Abstract

Bank or Depository institution failures are widely perceived to have greater adverse effects on the economy and thus are considered more important than those of other types of business firms. In part, banks failures are viewed to be more damaging than other failures because of a fear that they may spread in domino fashion throughout the banking system. Thus, the failure of an individual bank introduces the possibility of system wide failures or systemic risk. This perception is widespread. It appears to exist in almost every country at almost every point in time regardless of the existing economic or political structure. As a result, bank failures have been and continue to be a major  public policy concern in all countries and a major reason that banks are regulated more rigorously than other firms.This research investigates and presents a model of bankruptcy prediction for the Indonesian banking system using accounting data. The study evaluates to what extent balance sheet (BS) and the off- balance sheet (OBS) items, as prescribed in the CAMEL (Capital Adequacy, Assets Quality, Management, Earning and Liquidity) ratings system,  can be used as an early warning of bank failure. The study also investigates what are really the most important determinants of bank failure. This research may provide the Indonesian Banking Supervision Agency  with a new tool that may help them in developing an early warning system for predicting future possible problems in the Indonesian banking system.