Efficiency Analysis of Bank Buku 4 (Bank with Core Capital at Least Rp30 Trillion) Before and During The Covid-19 Pandemic: Efficiency Analysis of Bank Buku 4 (Bank with Core Capital at Least Rp30 Trillion) Before and During The Covid-19 Pandemic

Budi Santosa; Nurhayati; Nur Hidayatullah

doi:10.56107/penanomics.v2i3.149

Authors

Budi Santosa Universitas Trisakti
Nurhayati Universitas Trisakti
Nur Hidayatullah Universitas Trisakti

DOI:

https://doi.org/10.56107/penanomics.v2i3.149

Keywords:

Efficiency, Data Envelopment Analysis (DEA), Pandemic COVID-19, Bank BUKU 4

Abstract

The purpose of the study is to analyze Bank BUKU 4 Financial performance the COVID-19 Pandemic, until the years of the pandemic. The research based on secondary data, sourced from annual and finansial reports of banks in Bank BUKU 4 category along with source from www.ojk.com. Every banking companies in Indonesia are the population for this reseach. While the sample of this research are ten (10) banks that categorized as Bank BUKU 4 from 2018 until 2010 with purposive sampling technique. Data Envelopment Analysis (DEA) on non-parametric term testing used the intermediation approach become efficiency measurement method in this study. Total Assets, Deposits, Total Savings, and Operating Costs are the input variables. While the output variables contained in this study are Credit, Interest Income, and Net Income. There are two results based on this study; First, most of banks that included as Bank BUKU 4 measured to have high efficiency, although Bank Permata and CIMB have reached the level moderate in efficiency in some years. Second, the banks’ efficiency in Bank BUKU 4 category has No. difference on the study period

Downloads

Download data is not yet available.

References

Achi, A. (2021). Efficiency and its determinants in the Algerian banks: network data envelopment analysis and partial least squares regression. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-07-2021-0407

Alqahtani, F., Mayes, D. G., & Brown, K. (2017). Islamic bank efficiency compared to conventional banks during the global crisis in the GCC region. Journal of International Financial Markets, Institutions and Money, 51, 58–74. https://doi.org/10.1016/j.intfin.2017.08.010

Alwabel, S. . (2019). Measuring the efficiency of banks in the Saudi banking sector using data envelopment analysis (DEA) during the period 2013-2017. Lobal Journal of Economics and Business, 6(2), 238–255.

Barua, S. (2020). Understanding Coronanomics: The Economic Implications of the Coronavirus (COVID-19) Pandemic. SSRN Electronic Journal, April, 1–44. https://doi.org/10.2139/ssrn.3566477

Beck, T. (2020). Finance in the times of coronavirus. In Baldwin, R. and di Mauro, B.W. (eds). Economics in the Time of COVID-19. Centre for Economic Policy Research, London. Available at: https://voxeu.org/system/files/epublication/COVID-19.pdf.

Bhatia, A., & Mahendru, M. (2019). Financial Efficiency Evaluation of Indian Scheduled Commercial Banks. Jindal Journal of Business Research, 8(1), 51–64. https://doi.org/10.1177/2278682118823308

Carnevale, J. B., & Hatak, I. (2020). Employee adjustment and well-being in the era of COVID-19: Implications for human resource management. Journal of Business Research, 116, 183–187. https://doi.org/10.1016/j.jbusres.2020.05.037

Cecchetti, S. G., and Schoenholtz, K. L. (2020). Contagion: Bank runs and COVID-19. In Baldwin, R. and di Mauro, B. W. (eds). Economics in the Time of COVID-19. Centre for Economic Policy Research, London. Available at: https://voxeu.org/system/files/epublication/COVID-19.pdf.

Chaluvadi, S., Raut, R., & Gardas, B. B. (2018). Measuring the performance efficiency of banks in a developing economy: The case study of Indian public sector vs private sector. Benchmarking: An International Journa, 25(2), 575–606. https://doi.org/10.1108/BIJ-10-2016-0157

Chen, Z., Matousek, R., & Wanke, P. (2018). Chinese bank efficiency during the global financial crisis: A combined approach using satisficing DEA and Support Vector Machines☆. North American Journal of Economics and Finance, 43(May), 71–86. https://doi.org/10.1016/j.najef.2017.10.003

Daniar Paramita, R. W., Rizal, N., & Sulistyan, R. B. (2021). Metode Penelitian Kuantitatif Edisi 3.

Desta, T. S. (2016). Are the best African banks really the best? A Malmquist data envelopment analysis. Meditari Accountancy Research, 24(4), 588–610. https://doi.org/10.1108/MEDAR-02-2016-0016

Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of Business Research, 117(June), 284–289. https://doi.org/10.1016/j.jbusres.2020.06.008

Elnahass, M., Trinh, V. Q., & Li, T. (2021). Global banking stability in the shadow of Covid-19 outbreak. Journal of International Financial Markets, Institutions and Money, 72(September). https://doi.org/10.1016/j.intfin.2021.101322

Emrouznejad, A., & Yang, G. liang. (2018). A survey and analysis of the first 40 years of scholarly literature in DEA: 1978–2016. Socio-Economic Planning Sciences, 61, 4–8. https://doi.org/10.1016/j.seps.2017.01.008

Fernandes, F. D. S., Stasinakis, C., & Bardarova, V. (2018). Two-stage DEA-Truncated Regression: Application in banking efficiency and financial development. Expert Systems with Applications, 96(January), 284–301. https://doi.org/10.1016/j.eswa.2017.12.010

Goyal, J., Singh, M., Singh, R., & Aggarwal, A. (2019). Efficiency and technology gaps in Indian banking sector: Application of meta-frontier directional distance function DEA approach. Journal of Finance and Data Science, 5(3), 156–172. https://doi.org/10.1016/j.jfds.2018.08.002

He, H., & Harris, L. (2020). The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy. Journal of Business Research, 116, 176–182. https://doi.org/10.1016/j.jbusres.2020.05.030

Henriques, I. C., Sobreiro, V. A., Kimura, H., & Mariano, E. B. (2018). Efficiency in the Brazilian banking system using data envelopment analysis. Future Business Journal, 4(2), 157–178. https://doi.org/10.1016/j.fbj.2018.05.001

Jreisat, A., Hassan, H., & Shankar, S. (2018). Determinants of the productivity change for the banking sector in Egypt. Research in Finance, 34(1), 89–116. https://doi.org/10.1108/S0196-382120170000034011

Kamel, M. A., Mousa, M. E. S., & Hamdy, R. M. (2021). Financial efficiency of commercial banks listed in Egyptian stock exchange using data envelopment analysis. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-10-2020-0531

Khan, A., & Shireen, S. (2020). Drivers of financial and operational efficiency of MFIs: empirical evidences from Eastern Europe and Central Asia. Benchmarking, 27(9), 2679–2697. https://doi.org/10.1108/BIJ-11-2019-0515

Kirk, C. P., & Rifkin, L. S. (2020). I’ll trade you diamonds for toilet paper: Consumer reacting, coping and adapting behaviors in the COVID-19 pandemic. Journal of Business Research, 117, 124–131. https://doi.org/10.1016/j.jbusres.2020.05.028

Kwateng, K. O., Osei-Wusu, E. E., & Amanor, K. (2020). Exploring the effect of online banking on bank performance using data envelopment analysis. Benchmarking, 27(1), 137–165. https://doi.org/10.1108/BIJ-06-2018-0154

Li, R., Li, L., & Zou, P. (2021). Credit risk shocks and banking efficiency: a study based on a bootstrap-DEA model with nonperforming loans as bad output. Journal of Economic Studies, 48(1), 1–19. https://doi.org/10.1108/JES-08-2019-0395

Mahmoudabadi, M. Z., & Emrouznejad, A. (2019). Comprehensive performance evaluation of banking branches: A three-stage slacks-based measure (SBM) data envelopment analysis. International Review of Economics and Finance, 64, 359–376. https://doi.org/10.1016/j.iref.2019.08.001

Mansour, R., & El Moussawi, C. (2020). Efficiency, technical progress and productivity of Arab banks: A non-parametric approach. Quarterly Review of Economics and Finance, 75, 191–208. https://doi.org/10.1016/j.qref.2019.02.002

Pantano, E., Pizzi, G., Scarpi, D., & Dennis, C. (2020). Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak. Journal of Business Research, 116(May), 209–213. https://doi.org/10.1016/j.jbusres.2020.05.036

Peykani, P., Mohammadi, E., Emrouznejad, A., Pishvaee, M. S., & Rostamy-Malkhalifeh, M. (2019). Fuzzy data envelopment analysis: An adjustable approach. Expert Systems with Applications, 136, 439–452. https://doi.org/10.1016/j.eswa.2019.06.039

Puteh, A., Rasyidin, M., & Mawaddah, N. (2018). Islamic banks in indonesia: Analysis of efficiency. Emerald Reach Proceedings Series, 1, 331–336. https://doi.org/10.1108/978-1-78756-793-1-00062

Sharma, P., Leung, T. Y., Kingshott, R. P. J., Davcik, N. S., & Cardinali, S. (2020). Managing uncertainty during a global pandemic: An international business perspective. Journal of Business Research, 116(May), 188–192. https://doi.org/10.1016/j.jbusres.2020.05.026

Wasiaturrahma, Sukmana, R., Ajija, S. R., Salama, S. C. U., & Hudaifah, A. (2020). Financial performance of rural banks in Indonesia: A two-stage DEA approach. Heliyon, 6(7), e04390. https://doi.org/10.1016/j.heliyon.2020.e04390

Efficiency Analysis of Bank Buku 4 (Bank with Core Capital at Least Rp30 Trillion) Before and During The Covid-19 Pandemic