Measuring Commercial Bank Efficiency Data Analysis

Abstract

This study aims to measure the performance efficiency of commercial banks listed on the Stock Exchange in the period 2008-2012. Here are the key points of the study. Analysis Methods This study uses Data Envelope Analysis (DEA), a linear programming model that assesses the relative efficiency of decision-making units (DMUs). DEA allows the use of some inputs and outputs that are not commensurate. Research Objectives Identify relatively efficient banks, Determine the shortcomings of inputs and outputs from inefficient banks, Suggest efficient input and output targets for improvement. Approach This study adopts the DEA production approach with a limited choice of variables. This approach helps isolate the banks that achieve total efficiency scores. Implications The results of the study can provide insights for bank management to improve operational efficiency. Information on efficient input and output targets can be a guide for performance improvement. Briefly, this study uses the DEA method to assess and improve the efficiency of the performance of commercial banks in Indonesia during the period under study.