Title : BANKING PROFIT EFFICIENCY IN INDONESIA (Case Study of Commercial Banks Listed on the Indonesia Stock Exchange for the 2010-2016 Period)
Author : Juliana Sometimes
Universitas Airlangga
Item Type : Thesis (Dissertation)
Abstract
This study aims to: 1) to test and analyze differences in profit efficiency using the Bank Intermediation Approach (PIB) and the Bank Activity Approach (PKB) in commercial banks; 2) to test, analyze and prove that bank size, capital adequacy, liquidity, credit risk, market power and exchange rate influence the profit efficiency of commercial banks; and 3) to determine the profit efficiency of the Bank Intermediation Approach (PIB) for Commercial Banks with Business Activities (BUKU) based on core capital, bank size and commercial bank profits. The quantitative research method used in this study is explanatory research, which aims to analyze differences in profit efficiency using the Bank Intermediation Approach (PIB) and the Bank Activity Approach (PKB) as well as analyzing the influence of independent variables on the dependent variable. and descriptive research, to describe or provide an overview of the object being studied through data. To explain the differences between the two models, we use the paired mean t-test. Using Stochastic Frontier Analysis (SFA) to determine the effect of the independent variable on the dependent variable. Using quadrants to see a picture of the profit efficiency of the Bank Intermediation Approach (PIB) based on core capital, bank size and commercial bank profits. The research results show: 1) There are differences in profit efficiency using the Bank Intermediation Approach (PIB) and the Bank Activity Approach (PKB); 2) Bank size, capital adequacy (CAR), liquidity (LDR), credit risk (NPL), market power and exchange rate significantly influence the profit efficiency of commercial banks in Indonesia during 2010–2016 . 3.) The results of mapping the profit efficiency of the Bank Intermediation Approach (PIB) based on core capital that shows that commercial banks in the same BUKU category, using the same combination of input costs, produce different profit efficiency values for each commercial bank. Based on bank size, large commercial banks do not always produce high profit efficiency and vice versa. Based on profit, commercial banks that have high profit levels do not always have high profit efficiency values, and vice versa.
Keywords: Profit efficiency, Bank Intermediation Approach (PIB), Bank Activity Approach (PKB), bank size, core capital, profit.
