By Muhamad Nadratuzzaman Hosen, & Syafaat Muhari
Abstract:
The magnitude of the potential micro banking market has to make profits makes this segment important for rural banks (BPR), especially Sharia Rural Banks (SRBs). Thus, the efficiency for SRBs is required to survive amid the competition. This study used non-parametric data envelopment analysis (DEA) with the operational approach to analyze the efficiency levels of 73 SRBs during the periods of 2nd Quarter- June 2011to 1st Quarter- March 2013. The level of SRB’s efficiency can be integrated with the performance of banks which is adopted from Central Bank (BI/Bank Indonesia) criteria, namely CAMEL (Capital, Asset-Quality, Management, Earnings and liquidity). Based on the Spearman correlation, the result of this study indicated that the level of efficiency of SRBs using the DEA method has a real but weak relationship with the CAMEL. In addition, this study also showed that the SRB is less efficient than Sharia Banks (BUS).
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