MIX : Jurnal Ilmiah Manajemen
Vol 11, No 3 (2021): MIX: Jurnal Ilmiah Manajemen

EFFICIENT COMPARISON OF THE TOP 10 LARGEST COMMERCIAL BANKS IN INDONESIA: DEA (DATA ENVELOPMENT ANALYSIS)

Ari Christianti (Universitas Kristen Duta Wacana)



Article Info

Publish Date
14 Oct 2021

Abstract

Banking efficiency is very important in supporting the success of macro policies specifically, maintaining the sustainability of development that affects economic growth and social welfare. This study discusses the efficiency of commercial banks for the 2015-2019 period using data from the 10 largest commercial banks in Indonesia. The methodology used is non-parametric, Data Envelopment Analysis, to analyze technical efficiency. The results showed that 7 banks had a maximum efficiency level consistently during the study period and there were still 3 banks that did not reach the maximum efficiency but during certain periods or periods. Based on the results of the DEA, inefficient banks in a certain period can achieve maximum efficiency by reducing inputs such as labor costs, net fixed assets, and the number of deposits. This might be attributed that the competition in the banking industry and because not all inputs could be controlled by management, some large banks cannot maintain their level of efficiency consistently.

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Journal Info

Abbrev

Jurnal_Mix

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

MIX: Jurnal Ilmiah Manajemen is a journal that publishes the results of empirical research that has strong novelty with reference to the latest journals and contributes greatly to scientific development in the fields of Management: Finance, Marketing, Human Resources, and ...