International Economic and Finance Review
Vol. 2 No. 2 (2023): INTERNATIONAL ECONOMIC AND FINANCE REVIEW (IEFR)

Examining the Efficiency of the Islamic Banking Industry: Comparison of the Covid-19 Period and The New Normal Era in Indonesia

M. Ananda Ikhsan (Institut Agama Islam Tazkia)
Kahar Muzakkar (Institut Agama Islam Tazkia)
Firman Saputra (Institut Agama Islam Tazkia)
Solahuddin Al-Ayubi (Institut Agama Islam Tazkia)



Article Info

Publish Date
30 Sep 2023

Abstract

This study aims to examine the efficiency of the Islamic banking industry: a comparison of the COVID-19 period and the new normal era in Indonesia. This study uses Data Envelopment Analysis (DEA) applications that use Variable Return to Scale (VRS) to see the ability of banks to manage input and output variables, especially total financing in Islamic banking in Indonesia. The results of this study show that the average efficiency level of Islamic banks in Indonesia fluctuated during the period before COVID-19 until the New Normal Era. Interestingly, this study found that the overall efficiency level of Islamic banking in Indonesia shows an increasing trend in 2022 with an average efficiency value of 0.66. However, from 2019 to 2020 it experienced a very significant decline. Bank Mualamah Syariah is the bank with the highest efficiency value according to DEA, while Bank BRI Syariah and Bank Tabungan Pensiunan Nasional Syariah have the lowest value. Keywords: Efficiency, Islamic Banking, Data Envelopment Analysis (DEA), Covid-19

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Journal Info

Abbrev

IEFR

Publisher

Subject

Economics, Econometrics & Finance

Description

International Economic and Finance Review (IEFR) is a peer-reviewed and scientific journal published by Sekolah Tinggi Ekonomi dan Perbankan Islam Mr. Sjafruddin Prawiranegara Jakarta. This journal is published biannually in March and September. IEFR accepts articles that is using quantitative and ...