Determinants of efficiency of Islamic banks: Indonesian evidence

Determinants of efficiency of Islamic banks: Indonesian evidence

This study attempts to investigate the efficiency of Islamic banks in Indonesia and its determinants over the period of 2004-2014. Eleven full Islamic banks were selected for the sample. This study employs the Data Envelopment Analysis (DEA) in first stage of the analysis based on two inputs (fixed...

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Main Authors: Rahman Bayuny, Ahmad Fadlur, Haron, Razali
Format: Article
Language:English
Published: IIUM Press, International Islamic University Malaysia 2017
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/54445/
http://irep.iium.edu.my/54445/
http://irep.iium.edu.my/54445/1/157-1-644-1-10-20170810%20%281%29.pdf
id iium-54445
recordtype eprints
spelling iium-544452017-08-15T12:22:57Z http://irep.iium.edu.my/54445/ Determinants of efficiency of Islamic banks: Indonesian evidence Rahman Bayuny, Ahmad Fadlur Haron, Razali HG1501 Banking This study attempts to investigate the efficiency of Islamic banks in Indonesia and its determinants over the period of 2004-2014. Eleven full Islamic banks were selected for the sample. This study employs the Data Envelopment Analysis (DEA) in first stage of the analysis based on two inputs (fixed assets and deposits) and one output (financing income). Panel data regression is then employed in the second stage of analysis. This study finds that the efficiency scores of Islamic banks in Indonesia range from 61.4% to 96.4% between 2004-2014 with an overall efficiency of 75.6%. Regression analysis suggests that the efficiency of Islamic banks in Indonesia is negatively influenced by factors such as GDP growth, exchange rate and trade freedom while positively related with profitability, financing intensity, capitalization and non-financing expenses. IIUM Press, International Islamic University Malaysia 2017-08-14 Article PeerReviewed application/pdf en http://irep.iium.edu.my/54445/1/157-1-644-1-10-20170810%20%281%29.pdf Rahman Bayuny, Ahmad Fadlur and Haron, Razali (2017) Determinants of efficiency of Islamic banks: Indonesian evidence. Journal of Islamic Finance, 6 (1). pp. 1-15. ISSN 2289-2109 E-ISSN 2289-2117 http://10.101.244.45/iiibf-journal/index.php/jif/article/view/157
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Rahman Bayuny, Ahmad Fadlur
Haron, Razali
Determinants of efficiency of Islamic banks: Indonesian evidence
description This study attempts to investigate the efficiency of Islamic banks in Indonesia and its determinants over the period of 2004-2014. Eleven full Islamic banks were selected for the sample. This study employs the Data Envelopment Analysis (DEA) in first stage of the analysis based on two inputs (fixed assets and deposits) and one output (financing income). Panel data regression is then employed in the second stage of analysis. This study finds that the efficiency scores of Islamic banks in Indonesia range from 61.4% to 96.4% between 2004-2014 with an overall efficiency of 75.6%. Regression analysis suggests that the efficiency of Islamic banks in Indonesia is negatively influenced by factors such as GDP growth, exchange rate and trade freedom while positively related with profitability, financing intensity, capitalization and non-financing expenses.
format Article
author Rahman Bayuny, Ahmad Fadlur
Haron, Razali
author_facet Rahman Bayuny, Ahmad Fadlur
Haron, Razali
author_sort Rahman Bayuny, Ahmad Fadlur
title Determinants of efficiency of Islamic banks: Indonesian evidence
title_short Determinants of efficiency of Islamic banks: Indonesian evidence
title_full Determinants of efficiency of Islamic banks: Indonesian evidence
title_fullStr Determinants of efficiency of Islamic banks: Indonesian evidence
title_full_unstemmed Determinants of efficiency of Islamic banks: Indonesian evidence
title_sort determinants of efficiency of islamic banks: indonesian evidence
publisher IIUM Press, International Islamic University Malaysia
publishDate 2017
url http://irep.iium.edu.my/54445/
http://irep.iium.edu.my/54445/
http://irep.iium.edu.my/54445/1/157-1-644-1-10-20170810%20%281%29.pdf
first_indexed 2023-09-18T21:17:03Z
last_indexed 2023-09-18T21:17:03Z
_version_ 1777411632581836800

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