Efficiency and Productivity Performance of the National Private Banks in Indonesia

This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (D...

Full description

Bibliographic Details
Main Authors: Mohd. Azmi Omar, M. Shabri Abd. Majid, Ronald Rulindo
Format: Article
Language:English
Published: Universitas Gadjah Mada 2007-01-01
Series:Gadjah Mada International Journal of Business
Subjects:
Online Access:https://jurnal.ugm.ac.id/gamaijb/article/view/5603
_version_ 1819156790026174464
author Mohd. Azmi Omar
M. Shabri Abd. Majid
Ronald Rulindo
author_facet Mohd. Azmi Omar
M. Shabri Abd. Majid
Ronald Rulindo
author_sort Mohd. Azmi Omar
collection DOAJ
description This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (DEA) technique. Overall, the result shows that the Total Factor Production (TFP) Index of the national private banks has considerably increased for the whole industry, in which technical change is found to be a more important source of productivity growth to the Indonesian Banking Industry compared to efficiency change. Furthermore, the result also shows that the efficiency of two Islamic banks is above the average efficiency of the national private banks.
first_indexed 2024-12-22T15:58:28Z
format Article
id doaj.art-e3def32041ac431b9b42091f3baf5145
institution Directory Open Access Journal
issn 1411-1128
2338-7238
language English
last_indexed 2024-12-22T15:58:28Z
publishDate 2007-01-01
publisher Universitas Gadjah Mada
record_format Article
series Gadjah Mada International Journal of Business
spelling doaj.art-e3def32041ac431b9b42091f3baf51452022-12-21T18:20:44ZengUniversitas Gadjah MadaGadjah Mada International Journal of Business1411-11282338-72382007-01-019111810.22146/gamaijb.56034929Efficiency and Productivity Performance of the National Private Banks in IndonesiaMohd. Azmi Omar0M. Shabri Abd. Majid1Ronald Rulindo2Kulliyyah (Faculty) of Economics and Management Sciences, International Islamic University Malaysia (IIUM)International Islamic University Malaysia (IIUM)International Islamic University Malaysia (IIUM)This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (DEA) technique. Overall, the result shows that the Total Factor Production (TFP) Index of the national private banks has considerably increased for the whole industry, in which technical change is found to be a more important source of productivity growth to the Indonesian Banking Industry compared to efficiency change. Furthermore, the result also shows that the efficiency of two Islamic banks is above the average efficiency of the national private banks.https://jurnal.ugm.ac.id/gamaijb/article/view/5603bank efficiencydata envelopment analysis (DEA)Islamic versus conventional banksMalmquist index
spellingShingle Mohd. Azmi Omar
M. Shabri Abd. Majid
Ronald Rulindo
Efficiency and Productivity Performance of the National Private Banks in Indonesia
Gadjah Mada International Journal of Business
bank efficiency
data envelopment analysis (DEA)
Islamic versus conventional banks
Malmquist index
title Efficiency and Productivity Performance of the National Private Banks in Indonesia
title_full Efficiency and Productivity Performance of the National Private Banks in Indonesia
title_fullStr Efficiency and Productivity Performance of the National Private Banks in Indonesia
title_full_unstemmed Efficiency and Productivity Performance of the National Private Banks in Indonesia
title_short Efficiency and Productivity Performance of the National Private Banks in Indonesia
title_sort efficiency and productivity performance of the national private banks in indonesia
topic bank efficiency
data envelopment analysis (DEA)
Islamic versus conventional banks
Malmquist index
url https://jurnal.ugm.ac.id/gamaijb/article/view/5603
work_keys_str_mv AT mohdazmiomar efficiencyandproductivityperformanceofthenationalprivatebanksinindonesia
AT mshabriabdmajid efficiencyandproductivityperformanceofthenationalprivatebanksinindonesia
AT ronaldrulindo efficiencyandproductivityperformanceofthenationalprivatebanksinindonesia