Management Science Research Journal
Vol. 2 No. 3 (2023): August 2023

The Measurement of Efficiency and Analysis of Factors Affecting Conventional Commercial Banks in Indonesia

Aziz, Lukmanul Hakim (Unknown)
Manurung, Adler Haymans (Unknown)
Sembel, Roy (Unknown)
Imron, Ali (Unknown)



Article Info

Publish Date
26 Jun 2023

Abstract

The purpose of this research is to measure the level of efficiency of conventional commercial banks in Indonesia with input variables that are thought to influence output variables using non-parametric methods using the Data Envelopment Analysis (DEA) model and then to analyze the factors that affect the levels of bank efficiency. The object of this study consisted of 12 (twelve) Conventional Commercial Banks in Indonesia which were analyzed from 2012 to 2021. Overall, the results show that the level of efficiency of Conventional Commercial Banks in Indonesia during the period of this study, has not yet reached an optimal level of effectiveness. The factors that significantly affect the level of efficiency of conventional commercial banks are Concentration Ratio 4 (CR4), Market Share (MS), Lerner Index (LI), Loan to Deposit Ratio (LDR) and Capital Adequacy Ratio. (CAR). While the factors that do not affect the level of efficiency of conventional commercial banks are Return on Assets (ROA) and Non-Performing Loans. (NPL).

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Journal Info

Abbrev

msr

Publisher

Subject

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

Description

The Journal of Management Science Research (MSR) is an International Journal which has committed to publishing empirical and theoretical research articles, that have a high impact on the management field as a whole. The journal encourages new ideas or new perspectives on existing research. The ...