Measuring the Efficient of Islamic Rural Bank in Java Island Based on Stochastic Frontier Analysis (SFA) Method

Nisful Laila, Fitri Syarahfina Putri

2017

Abstract

The aim of this research is to measure the efficiency of Islamic rural bank in Java from 2011- 2015. The method applied is Stochastic Frontier Analysis (SFA) to know the level of cost efficiency and alternative profit efficiency of Islamic rural bank. The are 12 Islamic rural banks as sample, with 7 variables: total cost, total profit, cost of labor, cost of fund, cost of capital, total financing, and total of productive assets. The result shows efficiency of Islamic rural bank indicated that there is no Islamic rural bank with perfect value (value of efficiency =1) in cost efficiency and alternative profit efficiency. The average of cost efficiency for 5 years is 0.9449, the highest 0.9705 is by the Amanah Ummah Islamic rural bank. And the lowest value 0.8918 is by Situbondo Islamic Rural Bank. The average of profit efficiency is 0.7536, with the highest value 0.8775 is by the Islamic rural Bank Sukowati Sragen and the lowest is 0.5413 is owned by the Bina Amanah Satria Islamic rural bank.

Paper Citation

in Harvard Style

Laila N. and Putri F. (2017). Measuring the Efficient of Islamic Rural Bank in Java Island Based on Stochastic Frontier Analysis (SFA) Method.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 702-706. DOI: 10.5220/0007088307020706

in Bibtex Style

@conference{iciebp17,
author={Nisful Laila and Fitri Syarahfina Putri},
title={Measuring the Efficient of Islamic Rural Bank in Java Island Based on Stochastic Frontier Analysis (SFA) Method},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={702-706},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007088307020706},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Measuring the Efficient of Islamic Rural Bank in Java Island Based on Stochastic Frontier Analysis (SFA) Method
SN - 978-989-758-315-5
AU - Laila N.
AU - Putri F.
PY - 2017
SP - 702
EP - 706
DO - 10.5220/0007088307020706