Proceedings of the 1st Aceh Global Conference (AGC 2018)

Efficiency of Conventional Banks and Islamic Windows in Indonesia: A Comparative Analysis

Authors
Ratna Mulyany, Mirna Indriani, Heru Fahlevi, Siti Zulfa Maidari
Corresponding Author
Mirna Indriani
Available Online January 2019.
DOI
https://doi.org/10.2991/agc-18.2019.69How to use a DOI?
Keywords
Efficiency, Islamic banking, Islamic window, Data envelopment analysis
Abstract
This study examines and compares the efficiency of conventional banks and its Islamic windows in Indonesia for the period of 2011-2015. A quantitative descriptive analysis was utilized with a balanced panel data method. Secondary data in the form of annual reports of 15 conventional banks together with its 15 Islamic windows were studied for the years of 2011 until 2015. Efficiency was measured using Data Envelopment Analysis. The findings of this study indicate that conventional banks are slightly more efficient than its Islamic windows based on the Constant Return to Scale (CRS) model of efficiency measurement. Meanwhile, based on the Variable Return to Scale (VRS) model, Islamic windows are found to be more efficient than its conventional banks. Therefore, it can be generally concluded that the efficiency of Islamic windows is relatively better than its conventional banks. The findings of this study imply that efficiency measurement of banking institutions has to be approached from different models. This study also indicates that based on certain approaches, banking institutions that are operated based on Islamic principles may achieve more efficiency as compared to the conventional ones
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Volume Title
Proceedings of the 1st Aceh Global Conference (AGC 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2019
ISBN
978-94-6252-644-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/agc-18.2019.69How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Ratna Mulyany
AU  - Mirna Indriani
AU  - Heru Fahlevi
AU  - Siti Zulfa Maidari
PY  - 2019/01
DA  - 2019/01
TI  - Efficiency of Conventional Banks and Islamic Windows in Indonesia: A Comparative Analysis
BT  - Proceedings of the 1st Aceh Global Conference (AGC 2018)
PB  - Atlantis Press
SP  - 460
EP  - 471
SN  - 2352-5398
UR  - https://doi.org/10.2991/agc-18.2019.69
DO  - https://doi.org/10.2991/agc-18.2019.69
ID  - Mulyany2019/01
ER  -