By Muhamad Nadratuzzaman Hosen, Zahra Rosa Amalia, Syafaat Muhari
Abstract
One of the financial performance measurements of banks is to look at level of efficiency and this has been a concern of Financial Service Authority (FSA) of Indonesia. The level of efficiency is not only important for conventional banks but also important for Islamic banks to enable expansion by increasing the number of bank offices or new products. This research is based on data from four conventional banks i.e. Bank Mandiri, BRI, BCA and BNI and four Islamic banks i.e. Bank Syariah Mandiri, Muamalat, BRI Syariah and Mega Syariah during the period of 2009-2012. Method used in this research is the Data Envelopment Analysis (DEA) with intermediation approach and Constant Return to Scale (CRS) and Variable Return to Scale (VRS) models. The results showed that there is no significant differencies between conventional banks and Islamic banks’s level of efficiencies using CRS and VRS models. On the other hand, the result of paired sample t-test showed that there is a different level of efficiency between CRS and VRS model. This research showed that fixed asset variable (technology) and labour cost are significant influences in the differences between CRS and VRS models.
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