Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

Banking Efficiency Analysis with Data Envelopment Analysis Method on Registered Commercial Banks on the Indonesia Stock Exchange

Authors
Jessi Arsitha1, *, Isfenti Sadalia1, Rulianda Purnomo Wibowo1
1Universitas Sumatera Utara, Medan, Indonesia
*Corresponding author. Email: jessi.arsitha@gmail.com
Corresponding Author
Jessi Arsitha
Available Online 29 September 2023.
DOI
10.2991/978-94-6463-234-7_5How to use a DOI?
Keywords
Commercial Banks; Data Envelopment Analysis (DEA); Efficiency
Abstract

This study aims to analyze the efficiency level of commercial banks listed on the Indonesia Stock Exchange for the period between 2015 and 2019 and to analyze the efficiency level of commercial banks according to bank groups based on bank core capital. This type of research was quantitative research. This study used the Data Envelopment Analysis method with a Variable Return to Scale model using an intermediation approach. The results of this study indicated that the average banking efficiency score on the Indonesia Stock Exchange during the 2015–2019 research period was 0.949630. Of the 35 banks analyzed, there were only three commercial banks that were able to maintain a level of technical efficiency of 100 percent or 1 (efficient) in a row during 2015–2019, and thirty-two other banks that had not yet achieved 100 percent or 1 efficiency. The results of the study found that large banks were more efficient than medium and small banks.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
29 September 2023
ISBN
10.2991/978-94-6463-234-7_5
ISSN
2352-5428
DOI
10.2991/978-94-6463-234-7_5How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Jessi Arsitha
AU  - Isfenti Sadalia
AU  - Rulianda Purnomo Wibowo
PY  - 2023
DA  - 2023/09/29
TI  - Banking Efficiency Analysis with Data Envelopment Analysis Method on Registered Commercial Banks on the Indonesia Stock Exchange
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 36
EP  - 43
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_5
DO  - 10.2991/978-94-6463-234-7_5
ID  - Arsitha2023
ER  -