BANKING EFFICIENCY ANALYSIS WITH DATA ENVELOPMENT ANALYSIS METHOD ON REGISTERED COMMERCIAL BANKS ON THE INDONESIA STOCK EXCHANGE
Jessi Arsitha (1),* Isfenti Sadalia (2), Rulianda Purnomo Wibowo (2)

1 Magister Management, Pasca Sarjana dari Universitas Sumatra Utara
2 Magister Management,Pasca Sarjana dari Universitas Sumatera Utara

Abstract

This study aims to analyze the efficiency level of commercial banks listed on the Indonesia Stock Exchange for the 2015-2019 period. This type of research was quantitative research. The population in this study includes commercial banks that were consistently listed on the Indonesia Stock Exchange for the 2015-2019 period which had complete data of 35 commercial banks. This study used the Data Envelopment Analysis (DEA) method with a Variable Return to Scale (VRS) model using an intermediation approach. The results of this study indicated that the average banking efficiency score on the Indonesia Stock Exchange during the 2015-2019 research period was 0.949630. Of the 35 banks analyzed, there are only three commercial banks that was able to maintain a level of technical efficiency of 100 percent or 1 (efficient) in a row during 2015-2019 and thirty-two other banks that had not yet achieved 100 percent or 1 efficiency. The results of the study based on bank groups, namely large banks, medium banks, and small banks showed that large banks were more efficient than the groups of medium and small banks.

Keywords: Commercial Banks, Efficiency, Data Envelopment Analysis (DEA)

Topic: Financial Management and Accounting