Financial performance of rural banks in Indonesia: A two-stage DEA approach

Heliyon

Sri Cahyaning Umi Salama¹  Wasiaturrahma²  Shochrul Rohmatul Ajija²  Raditya Sukmana³  Ahmad Hudaifah⁴ 

[1] Corresponding author.;Department of Economics, Universitas Airlangga, Indonesia;Department of Shariah Economics, Universitas Airlangga, Indonesia;Universitas Muhammadiyah Malang, Indonesia;

关键词: Efficiency;    Conventional and Islamic rural bank;    Data envelopment analysis;    Tobit;    Banking;    Corporate finance;   

DOI  :  

来源: DOAJ

【 摘 要 】

This study aims to analyze the efficiency performance of conventional and Islamic rural banks in Indonesia, specifically, Bank Perkreditan Rakyat (BPR) and Bank Pembiayaan Rakyat Syariah (BPRS). Using a DEA approach, the results indicate that both BPR and BPRS are still inefficient in terms of the intermediation role but are efficient in production. Furthermore, the Tobit estimation show that these two efficiency results are positively affected by location and the capital adequacy ratio (CAR). These rural banks operating in cities tend to have a higher level of efficiency than otherwise. Moreover, the higher the capital, the more efficient both Islamic and conventional rural banks in terms of production and intermediation.

【 授权许可】

Unknown