Research Article
Indonesian Banking Efficiency in the Post-Asian Monetary Crisis
@INPROCEEDINGS{10.4108/eai.3-8-2021.2315127, author={Budi Santosa}, title={Indonesian Banking Efficiency in the Post-Asian Monetary Crisis}, proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia}, publisher={EAI}, proceedings_a={LEPALISSHE}, year={2022}, month={1}, keywords={efficiency; banking; data envelopment analysis (dea); asian monetary crisis}, doi={10.4108/eai.3-8-2021.2315127} }- Budi Santosa
Year: 2022
Indonesian Banking Efficiency in the Post-Asian Monetary Crisis
LEPALISSHE
EAI
DOI: 10.4108/eai.3-8-2021.2315127
Abstract
This study examines the determinants of Indonesian banking efficiency in post-Asian monetary crisis. It used a quantitative approach and historical data, where the data used is both time series (2000–2012), and cross-sectional (for some commercial banks that meet the requirements of the sample). Conceptually, it will rely upon the concept of efficiency proposed by Farrell (1957). Meanwhile, banking efficiency measurement techniques are used in the DEA with the intermediation approach as the basis for the selection of input and output. In the application of DEA, it will use both CRS models (models CCR) and VRS (BCC models). While in its construction, it will use an input-oriented approach. In addition, banks in Indonesia are significantly affected by Size, State Ownership, Private Ownership, Non-merger, Foreign Ownership, Risk, and Economic Growth. From the study, it appears that the Size and Ownership of both state-private and domestic-foreign are variables that affect the Overall Technical Efficiency (OTE), Pure Technical Efficiency (PTE), and Scale Efficiency (SE). Furthermore, Non-Merger is a variable that affects the Overall Technical Efficiency (OTE), and Scale Efficiency (SE). Meanwhile, Risk affects only Pure Technical Efficiency (PTE), as well as Economic Growth which only affects Overall Technical Efficiency (OTE). Instead, Competition, Inflation, and Global Crisis did not affect all types of efficiency.