Unknown

Dataset Information

0

Financial performance of rural banks in Indonesia: A two-stage DEA approach.

ABSTRACT: This study aims to analyze the efficiency performance of conventional and Islamic rural banks in Indonesia, specifically, Bank Perkreditan Rakyat (BPR) and Bank Pembiayaan Rakyat Syariah (BPRS). Using a DEA approach, the results indicate that both BPR and BPRS are still inefficient in terms of the intermediation role but are efficient in production. Furthermore, the Tobit estimation show that these two efficiency results are positively affected by location and the capital adequacy ratio (CAR). These rural banks operating in cities tend to have a higher level of efficiency than otherwise. Moreover, the higher the capital, the more efficient both Islamic and conventional rural banks in terms of production and intermediation.

SUBMITTER: Wasiaturrahma 

PROVIDER: S-EPMC7371765 | biostudies-literature | 2020 Jul

REPOSITORIES: biostudies-literature

Json Xml
altmetric image

Publications

Financial performance of rural banks in Indonesia: A two-stage DEA approach.

Wasiaturrahma   Sukmana Raditya R   Ajija Shochrul Rohmatul SR   Salama Sri Cahyaning Umi SCU   Salama Sri Cahyaning Umi SCU   Hudaifah Ahmad A  

Heliyon 20200717 7

This study aims to analyze the efficiency performance of conventional and Islamic rural banks in Indonesia, specifically, <i>Bank Perkreditan Rakyat</i> (BPR) and <i>Bank Pembiayaan Rakyat Syariah</i> (BPRS). Using a DEA approach, the results indicate that both BPR and BPRS are still inefficient in terms of the intermediation role but are efficient in production. Furthermore, the Tobit estimation show that these two efficiency results are positively affected by location and the capital adequacy  ...[more]