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Analysis of Technical Efficiency of Rural Bank in Tasikmalaya Indonesia Using Data Envelopment Analysis (DEA) Approach

Published in Economics (Volume 6, Issue 3)
Received: 10 May 2017    Accepted: 22 June 2017    Published: 10 August 2017
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Abstract

This study aimed to implement a model of assessment of the level of efficiency in Rural Bank with non-parametric statistical approach. This research was conducted at Rural Bank in the Tasikmalaya City with a span that is in 2013 and 2014. The analysis tool used is Data Envelopment Analysis (DEA). The results showed that of 5 Rural Bank, as many as 4 Rural Bankexperiencing technical efficiency in 2013 and 2014. Among those who have efficient that Artha Galunggung, Artha Sukapura, Artha Jaya Mandiri and Pola Dana. While 1 Rural Bank that has not experienced the efficiency during the study period, namely Siliwangi. The cause of the inefficiency of Siliwangi are too much assets, too much third party fund unemployed, too much deposits are unemployed, so the lack of credit, as well as too the lack of operating income. So in order to achieve optimal efficiency it must reduce its assets by 15%, decrease in deposits from savings by 21% and reduced deposits by 42%, should increase lending as much as 6% and operating income should be increased as much as 6%. Whereas in 2014, Siliwangi be in a position decreasing (declining condition) or the condition through a period of efficient, so it can not be given a solution.

Published in Economics (Volume 6, Issue 3)
DOI 10.11648/j.eco.20170603.12
Page(s) 38-43
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Rural Bank, Efficiency, Data Envelopment Analysis

References
[1] W. W. Cooper, J. Zhu, Handbook on Data Envelopment Analysis, Kluwer Academic Publishers, (2004).
[2] Muvingi, Jacob, Hotera, Suggest. Zimbabwe commercials banks efficiency and productivity analysis through DEA Malmquist approach: 2002-2012. Journal of Data Envelopment Analysis and Decision Science 2015 (1): p. 32-49.
[3] Gayval, Bhagat K and Bajaj, V H. Measuring Efficiency of Indian Banks: A DEA-Stochastic Frontier Analysis. International Journal of Innovative Research in Science, Engineering and Technology. 2015. 4 (12): p. 12602.
[4] Hamim S. A. Mokhtar, N. A. a. S. M. A. H., Efficiency and Competition of Islamic Banking in Malaysia. Journal Humanomics, 2008. 24(1): p. 20.
[5] Sheldon, G., Efficiency and Scale Economies in European banking: A cross-Country Comparison. 2000, Labour Market and Industrial Organization Research Unit (FAI) Switzerland
[6] Al-Ani, K. S. K. A.- D. a. A. H. B., Using Data Envelopment Analysis to Measure Cost Efficiency With an Application on Islamic Banks. Scientific Journal of Administrative Development, 2006. 4: p. 22.
[7] Fadzlan, S., The Efficiency of Islamic Banking Industry: A Non-Paramentric Analysis With Non-Discretionary Input Variabel. Islamic Economic Studies, 2006. 14(1).
[8] Sulistyoningsih, M., Analisis Efisiensi Biaya Pada Bank Umum Syariah Di Indonesia Menggunakan X-Efisiensi, in Economics. 2006, University Negeri of Semarang: Semarang.
[9] Pusparini, N. R. a. I., Analisis Perbandingan Efisiensi Teknis Perbankan Konvensional dan Perbankan Syariah periode 2005-2006. Media Ekonomi, 2007. 15(3): p. 21.
[10] Yousif, H. Ashour, Measuring the Technical Efficiency of the Banking Sector in Palestine using the Data Envelopment Analysis Approach, PhD Thesis, (2007).
[11] S. Phochathan, W. Krasachat, K. N. Pompech, W. Sanguanwongwan, Efficiency Measurement and Productivity Change in the Thai Banking Industry Before and After the Economic Crisis (1993-2006), PhD Thesis, Singapore: Singapore Economic Review Conference, (2009).
[12] Sufian, F.; Noor, M. A. N. M. The determinants of Islamic bank’s efficiency changes: Empirical evidence from MENA and Asian banking sectors. Int. J. Islam. Middle East. Financ. Manag. 2009 (2): p. 120.
[13] Ben Hassine, M.; Limani, R. The impact of bank characteristics on the efficiency: Evidence from MENA Islamic banks. J. Appl. Financ. Bank. 2014 4: p. 237.
[14] Eisenbeis, S. H. K. a. R. A., An Analysis of Inefficiency in banking: A stochastic Cost Frontier Approach. FRBSF Economic Review 1996. 2(11): p. 16.
[15] Lestari, A. S. a., Efisiensi Teknik Perbankan Indonesia Pasca Krisis Ekonomi: Sebuah Studi Empiris Penerapan Model DEA. Jurnal Ekonomi Pembangunan, 2009. 10(1): p. 19.
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  • APA Style

    Noneng Masitoh, Irman Firmansyah. (2017). Analysis of Technical Efficiency of Rural Bank in Tasikmalaya Indonesia Using Data Envelopment Analysis (DEA) Approach. Economics, 6(3), 38-43. https://doi.org/10.11648/j.eco.20170603.12

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    ACS Style

    Noneng Masitoh; Irman Firmansyah. Analysis of Technical Efficiency of Rural Bank in Tasikmalaya Indonesia Using Data Envelopment Analysis (DEA) Approach. Economics. 2017, 6(3), 38-43. doi: 10.11648/j.eco.20170603.12

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    AMA Style

    Noneng Masitoh, Irman Firmansyah. Analysis of Technical Efficiency of Rural Bank in Tasikmalaya Indonesia Using Data Envelopment Analysis (DEA) Approach. Economics. 2017;6(3):38-43. doi: 10.11648/j.eco.20170603.12

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  • @article{10.11648/j.eco.20170603.12,
      author = {Noneng Masitoh and Irman Firmansyah},
      title = {Analysis of Technical Efficiency of Rural Bank in Tasikmalaya Indonesia Using Data Envelopment Analysis (DEA) Approach},
      journal = {Economics},
      volume = {6},
      number = {3},
      pages = {38-43},
      doi = {10.11648/j.eco.20170603.12},
      url = {https://doi.org/10.11648/j.eco.20170603.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20170603.12},
      abstract = {This study aimed to implement a model of assessment of the level of efficiency in Rural Bank with non-parametric statistical approach. This research was conducted at Rural Bank in the Tasikmalaya City with a span that is in 2013 and 2014. The analysis tool used is Data Envelopment Analysis (DEA). The results showed that of 5 Rural Bank, as many as 4 Rural Bankexperiencing technical efficiency in 2013 and 2014. Among those who have efficient that Artha Galunggung, Artha Sukapura, Artha Jaya Mandiri and Pola Dana. While 1 Rural Bank that has not experienced the efficiency during the study period, namely Siliwangi. The cause of the inefficiency of Siliwangi are too much assets, too much third party fund unemployed, too much deposits are unemployed, so the lack of credit, as well as too the lack of operating income. So in order to achieve optimal efficiency it must reduce its assets by 15%, decrease in deposits from savings by 21% and reduced deposits by 42%, should increase lending as much as 6% and operating income should be increased as much as 6%. Whereas in 2014, Siliwangi be in a position decreasing (declining condition) or the condition through a period of efficient, so it can not be given a solution.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Analysis of Technical Efficiency of Rural Bank in Tasikmalaya Indonesia Using Data Envelopment Analysis (DEA) Approach
    AU  - Noneng Masitoh
    AU  - Irman Firmansyah
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    N1  - https://doi.org/10.11648/j.eco.20170603.12
    DO  - 10.11648/j.eco.20170603.12
    T2  - Economics
    JF  - Economics
    JO  - Economics
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    EP  - 43
    PB  - Science Publishing Group
    SN  - 2376-6603
    UR  - https://doi.org/10.11648/j.eco.20170603.12
    AB  - This study aimed to implement a model of assessment of the level of efficiency in Rural Bank with non-parametric statistical approach. This research was conducted at Rural Bank in the Tasikmalaya City with a span that is in 2013 and 2014. The analysis tool used is Data Envelopment Analysis (DEA). The results showed that of 5 Rural Bank, as many as 4 Rural Bankexperiencing technical efficiency in 2013 and 2014. Among those who have efficient that Artha Galunggung, Artha Sukapura, Artha Jaya Mandiri and Pola Dana. While 1 Rural Bank that has not experienced the efficiency during the study period, namely Siliwangi. The cause of the inefficiency of Siliwangi are too much assets, too much third party fund unemployed, too much deposits are unemployed, so the lack of credit, as well as too the lack of operating income. So in order to achieve optimal efficiency it must reduce its assets by 15%, decrease in deposits from savings by 21% and reduced deposits by 42%, should increase lending as much as 6% and operating income should be increased as much as 6%. Whereas in 2014, Siliwangi be in a position decreasing (declining condition) or the condition through a period of efficient, so it can not be given a solution.
    VL  - 6
    IS  - 3
    ER  - 

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Author Information
  • Department of Management of Finance & Banking, Faculty of Economics, University of Siliwangi, Tasikmalaya, Indonesia

  • Department of Accounting, Faculty of Economics, University of Siliwangi, Tasikmalaya, Indonesia

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