Jejak Vol 11 (2) (2018): 390-400, DOI: https://doi.org/10.15294/jejak.v11i2.

16059

JEJAK
Journal of Economics and Policy
http://journal.unnes.ac.id/nju/index.php/jejak

Effects of Macroeconomics Factors toward Efficiency in Banking

Faaza Fakhrunnas1 , Faiza Husnayeni Nahar2, Hilman Fikri Albana3

1
Faculty of Economics and Business, Universitas Islam Indonesia
2
Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta
3
Faculty of Economics and Management Sciences, International Islamic University Malaysia

Permalink/DOI: https://doi.org/10.15294/jejak.v11i2.16059

Received: March 2018; Accepted: May 2018; Published: September 2018

Abstract:
The main objective of this study is to analyze the effect of macroeconomic factors toward efficiency in Islamic and Conventional
Banking. Banking as one of components in financial system that highly contributes to the growth and development of the economy in
a country, especially after establishment of the first Islamic bank in Indonesia at the year of 1992. Afterwards, Islamic banking began
to develop and start to compete with conventional banking. Hence, in order to survive and do fair competitiveness, Islamic and
Conventional banking have to maintain its efficiency. This study uses the methodology of Data Envelopment Analysis (DEA). This
study also analyze the macroeconomics factors namely inflation, interest rate of Bank indonesia and the growth of Gross Domestic
Product (GDP) which affects the bank efficiency. Our data is obtained from annual financial statement published by each islamic and
conventional bank and Bank Indonesia starting from 2007 to 2016. This study shows that conventional banks have higher efficiency
than Islamic banks, while crisis in 2008 had no significant effect on the efficiency of Islamic and conventional banking. However, a
decrease in the level of efficiency that occurs in conventional banking indicates that conventional banking is more sensitive to the
crisis.

Keywords: Efficiency, Data Envelopment Analysis, Bank, Macroeconomics Factor

How to Cite: Fakhrunnas, F., Nahar, F., & Albana, H. (2018). Effects of Macroeconomics Factors toward Efficiency
in Banking. JEJAK: Jurnal Ekonomi dan Kebijakan, 11(2), 390-400.
doi:https://doi.org/10.15294/jejak.v11i2.16059

© 2018 Semarang State University. All rights reserved


Corresponding author : ISSN 1979-715X
Address: Jl. Ringroad Selatan, Tamantirto, Bantul, Yogyakarta, Indonesia
E-mail: [email protected]
JEJAK Journal of Economics and Policy Vol 11 (2) (2018): 390 - 400 391

INTRODUCTION Muhammad, dan Hadi (2012) explained that

Islamic banking in Indonesia has grown input sector can be calculated from deposits,
significantly since its first establishment at fixed assets, securities dan derivatives while
the year of 1992 (Abduh & Omar, 2009). output is based on interest income, net
Central Bank of Indonesia reported that 13 of income and funding.
Islamic banks have been officialy operating In addition, banking performance can
in Indonesia within the last two decades. also be affected by external sector or
This long process is introduced by macroeconomic variables. Many researchers,
Conventional bank which implemented dual Masood, Ashraf (2012), Karim, Al-Habshi,
banking system. Initially, Conventional bank Abduh, (2016), Sanwari dan Zakaria (2013)
created Islamic Business Unit to facilitate believed that macro economic variables,
and promote more segments of population, particularly inflation and economic growth,
particularly for Muslim costumers, within have huge contribution on the success or
2002 until 2009. Then they converted the failure of the banking performance. It is
Islamic Business Unit into General Islamic reported that GDP has negative impact on
Bank afterwards. bank profitability while inflation did not give
Similar to Islamic banking, Conventional such significant effect to the profitabilities of
banking also shows up some good the bank. According to Masood and Ashraf
improvements. Financial Services Authority (2012), bank with good efficiency and greater
(OJK) stated that both Conventional and asset would probably receive high Return on
Islamic banking show rapid trend on asset Asset (ROA). If internal factors of the bank
with about IDR 7.387 trillion per December can be maintained appropriately, the exter-
2017. However, Islamic banking has grown nal factors can be monitored afterward.
threefold more greatly than Conventional Moreover, Amzal (2016) revealed that BI rate
banking in terms of growth, while Islamic also considered as other macroeconomic
banking is less on market share (5.44%) variables which affected banking perfor-
compared to Conventional banking (OJK, mance, specifically on Islamic banking.
2017). In case of Hongkong, Drake, Hall and
In order to evaluate banking perfor- Simper (2005) explained that macroecono-
mance, efficiency can be used as an indicator mic variables and regulation affect banking
of banking measurement. Farrell (1957) system even though the magnitude of those
emphasized that efficiency only concerns on external factors depend on company size and
input and output usage of company’s different financial sector. Moreover, it is
production. Within banking context, bank as stated that financial deregulation and South-
a financial intermediary would use it to East Asean crisis 1997/1998 did not give
measure the efficiency (Hadad, Santoso, much significant effect to the banking
Mardanugraha, & Ilyas, 2003 ; Karim, 2017). efficiency. The crisis tends to affect develop-
Specifically, efficiency can be seen from ment of macroeconomic factor and property
banking activity, for instance collecting sector.
funds from customers and distribute it other The banking efficiency decreases
customers who need the money (Hassan, gradually due to the crisis in 1998. The
Mohamad, & Khaled I. Bader, 2009). Yahya, banking system has begun to recover their
392 Fakhrunnas, et al., Effects of Macroeconomics Factors toward Efficiency in Banking

efficiency loss. Mostly, they experience the defined as a tool to analyze multifactor
losses due to other external shocks, such as productivity in terms of company efficiency
terrorisme attack that happened on measurement where total ouput is divided by
September at New York and Washington DC total input of company (Talluri, 2000).
at the year of 2001, impact of ENRON scandal Mostly, DEA is used to measure relative
which leads to economic slowdown efficiency from multiple inputs and outputs
worldwide. in order to help decision maker to manage
company effectively (Kuah, Wong, &
Input Variables Output Variables Behrouzi, 2010).
The aims of this study are (1) to compare
Banking
Efficiency
the Conventional banking and Islamic
banking in Indonesia in terms of efficiency
from 2007 until 2016; (2) to analyze macro-
Macro Economics Factors economic factors which affect efficiency of
Figure 1. Research Scheme
Islamic banking and conventional banking;
and (3) to determine the vulnerability of
Other studies, such as Hassan, banking industry in Indonesia toward
Mohamad, & Khaled I. Bader (2009), show macroeconomic factors. Thus, this result is
that banking is basically more efficient by expected to be a benchmark in formulating
collecting fund on input sectors rather than policies for stakeholder while managing
receiving income and revenue from funding banking productivity and mitigating the risk
and productive activities at output sectors. from macroeconomics variables so that the
Their study revealed that both Conventional banking industry can be more resilient to
and Islamic banking incur loss of oppor- carry out its function as financial inter-
tunity by 27% of revenue if they produce mediary
same input. Moreover, the study indicates
that banking losses 20.9% of profit as they RESEARCH METHODS
cannot manage input appropriately (Hassan
Based on Central bank of Indonesia,
et al., 2009).
bank is divided into many categories,
On the other hand, by comparing the
including Conventional bank, Islamic
efficiency level between Islamic banking and
Business Unit, Islamic bank, Islamic and
Conventional banking using Data Envelop-
Conventional Rural Bank (BPR). However,
ment Analysis (DEA), this study found that
due to limited data, this study would be
Conventional banking has higher efficiency
more focus on measuring the efficiency of
than Islamic banking as Conventional
Islamic bank and Conventional bank. There
banking has better management and banking
are 11 Islamic banks and 15 Conventional
technology system compared to Islamic
Banking. Islamic banks consist of Bank BNI
banking (Ahmad & Rahim Abdul Rahman,
Syariah, Bank Mega Syariah, Bank Muamalat
2012).
Indonesia, Bank Syariah Mandiri, Bank BCA
Over the past two decades, many
Syariah, Bank BRI Syariah, Bank Jabar Banten
researchers used DEA as the common
Syariah, Bank Panin Syariah, Bank Syariah
method to measure banking performance by
Bukopin, Bank Victoria Syariah and Bank
evaluating the efficiency score. DEA is
JEJAK Journal of Economics and Policy Vol 11 (2) (2018): 390 - 400 393

Maybank Syariah Indonesia. While, flow of fund from one unit to another unit.
Conventional banks consist of Bank QNB, Bank as financial intermediary, would collect
Bank Windu, Bank Ekonomi, Bank BRI Argo, the fund from the surplus parties and
Bank Sinarmas, Bank Capital, Bank Saudara, distribute it to the deficit parties (Freixas &
Bank Victoria, Bank MNC, Bank Pundi, Bank Jean-Charles Rochet, 2008). Due to its
Artha Graha, Bank Mayapada, Bank of function, the input variables from this study
Indonesia India, Bank BNP, and Bank Bumi include total deposito (x1) and operational
Arta. cost (x2), while total payment (y1) and
The selection of our data sources in this earning aset (y2) are included as output
study was considered based on (a) the total variables (Ascarya, 2012). This method would
asset of both banks and (b) reserve bank. measure the banking efficiency through
Conventional bank should have total asset output from its input. The efficiency formula
which is no more or less than the asset of for Islamic and Conventional banking is:
Islamic bank. Thus, there will be no p

widening gap between total asset of  uk ykj0

k 1
Bank Efficiency0 = m
Conventional and Islamic bank. Then, the
characteristics of Conventional bank should  vl xij0
I 1
be the same as the Islamic bank, especially
Explanation:
its function as reserve bank. In this study,
M : Input
our data were collected from annual financial
P : Output
report of Central bank of Indonesia at the
Uk : Input portion
period of 2007 until 2016.
UI : Output portion
In addition, this study also tried to Xij : Total Input of the bank
analyze the causes of crisis in Indonesia at Yij : Total output of the bank
the year of 2008, specifically to know more
Basically, efficiency concept is based on
on impact of crisis on the banking
microeconomic theory, which is production
performance (efficiency) at that period.
theory. According to Cobb-Douglas as cited
In this study, Data Envelopment Analysis in Hossain & Majumder (2015), production
(DEA) was used as a tool to measure the function can be used to know production
efficiency of bank based on input and output scale of production process, whether
from each company (Ramanathan, 2003). production would be at the position of
According to Ascarya (2012), DEA is Constant Return to Scale (CRTS), Increasing
appropriate model to be implemented in Return to Scale (IRTS) or Decreasing Return
bank as this method can easily detect the to Scale (DRTS).

Table 1. Research Variables

Type of Variable Definition Unit Source

Input variable (x1) Total Deposit Million Rupiah Balance Sheet
Input variable (x2) Operational Cost Million Rupiah Balance Sheet
Output variable (y1) Total Payment Million Rupiah Balance Sheet
Output variable(y2) Earning Asset Million Rupiah Balance Sheet
Source: proceed by researcher
394 Fakhrunnas, et al., Effects of Macroeconomics Factors toward Efficiency in Banking

Assumption of Constant Return to Scale Efficiency of Islamic bank and

(CRTS) was developed by Charnes, Cooper Conventional bank
and Rhodes (CCR) at the year of 1978. This Panel data analysis is conducted to
model assumed that the increasing input by measure the scale efficiency from 11
n leads to increase the output by n too. Conventional Banks and 15 Islamic Banks.
While, in order to analysze IRTS and DRTS, After obtaining the regression estimation,
another model was improved by Banker, the result can be seen in Table 2. Table 2
Charnes, Cooper (BCC) at the year 1984. The shows fluctuation of efficiency level of
Variable Return to Scale (VRS) assumed that Islamic banking and Conventional banking
the increment of input by n would not from 2007 to 2016.
increase the output by n either, while the
In 2007 (see attachment 1), there are only
effect could be smaller or larger than total
three official Islamic Banks registered by
input. Increasing Return to Scale is the
Central Bank of Indonesia. Those three
condition when the output is larger than
banks include Bank Muammalat, Bank Mega
input while Decreasing Return to Scale is
Syariah and Bank Syariah Mandiri with
identified when output is smaller than input
efficiency level about 68.63 percent, 39.11
(Ascarya & Yumanita, 2006).
percent, and 100 percent respectively, while
This research would focus on using the total efficiency was 69.25 percent.
efficiency measurement and looking for the
Inefficency of Bank Mega Syariah tends
effect of subprime mortgage crisis which
to reduce the efficiency of all Islamic banks
occurred in 2008 toward the efficiency level
in 2007. Bank Mega Syariah begun to run the
of conventional and Islamic banking. Thus,
business on 27 July 2004 so that they cannot
in order to see the impact of crisis on
reach optimal efficiency due to limited
efficiency, this study will use macroecono-
capital and lack of management skills.
mics factors as independent variables and
efficiency as dependent variable.
Table 2. Scale Efficiency Islamic bank and
The independent variables consist of
Conventional Bank in 2007 -2016
inflation, Bank Indonesia rate and Gross
Domestic Product (GDP). The multiple Islamic Conventional
Year
Bank Bank
regressions would be used in further to
2007 69.25 85.01
identify relationship between independent
2008 71.60 82.73
variables and the dependent variable.
2009 82.91 96.48
2010 62.94 88.43
RESULTS AND DISCUSSION 2011 60.70 86.34
The explanation of the result comprises 2012 43.68 74.10
two main outlines: (a) measurement of bank 2013 76.54 85.26
efficiency using DEA, (b) data analysis with 2014 86.67 91.51
2015 98.35 77.62
multiple regression technique in order to
2016 92.73 90.31
know the effect of macroeconomics variable
Source: Proceed by researcher
on efficiency level of the bank from 2007 to
2016. On the other hand, Conventional bank
has better efficiency than that of Islamic
JEJAK Journal of Economics and Policy Vol 11 (2) (2018): 390 - 400 395

Bank in 2007. They achieve 85.01 percent of in 2009. At that time, conventional banking
efficiency as they already existed before the has a nearly perfect efficiency level, achieving
Islamic bank establishment in 2001. 96.48 percent. At the same year, Bank India
When subprime mortgage crisis hit the Indonesia (previously Bank Swadesi) also
world, Islamic and Conventional bank joined in conventional banking group after
experience sharp decline in efficiency. By obtaining fresh money from the investors in
accumulation, the declining number of 2007. As a consequence, the financial
Conventional banking’s efficiency reached performance of Bank India Indonesia gets
2.28 percent lower than that in the previous better as shown by its efficiency level which
year. The capital of the bank has declining attains 95.93 percent. High efficiency level of
number on efficiency by 56.95 percent, conventional banking is caused by six
contrasted to their perfect efficiency one year conventional banks with perfect efficiency
ago. Moreover, Bank Arta also experiences a which attains 100 percent, including Bank
decrease in efficiency by 39.22 percent BNP, Bank Artha Graha, Bank Pundi, Bank
compared to its high efficiency last year, Saudara, Bank Ekonomi dan Bank Windu.
which was 89.45 percent. While the
120.00
efficiency in other Conventional banks, such
100.00
as Bank BNP, Bank Mayapada, Bank Saudara, 80.00
and Bank Sinarmas, also decreases by 1 60.00
percent to 15 percent. What makes our result 40.00
20.00
interesting is that the decline of efficiency in 0.00
conventional banks during the crisis is not
followed by Islamic banks. By contrast, the
efficiency of Islamic banking increases Bank Syariah Bank Konvensional

compared to previous years.

Figure 2. The Development of Islamic and
In 2008, the efficiency of Islamic banks
Conventional Banking Efficiency in
attains 71.60 percent or equivalent to 2.35 Indonesia From 2007 to 2016
percent. This increase comes from higher Source: Data processed by the researchers
efficiency in Bank Muammalat and Bank
In the context of Islamic banking (Figure
Mega Syariah with their respective efficiency
2), the highest point of efficiency attained so
by 71.6 percent and 84.12 percent.
far is 82.2 percent. Even though the increase
Apparently, higher efficiency of both Islamic
in efficiency level of Islamic banking is not as
banks is not followed by Bank Syariah
high as conventional banking, it is noted that
Mandiri with its decline in efficiency which
Islamic banking has upward trend of increase
only attains 50.85 percent. At the same year,
in efficiency level prior to year 2009. In the
there are two more Islamic banks added into
same year, the number of Islamic banks also
the list including Bank Bukopin Syariah and
increases by one which comes from Bank
Bank BRI Syariah with their respective role in
Panin Syariah, resulting in six banks on total.
higher efficiency of Islamic banking during
So far, the highest level of efficiency is
that year (see Appendix 1.a).
caused by good performance of three Islamic
Based on Table 2, the efficient level of
banks as shown by financial performance of
Islamic and conventional banking takes place
Bank Muammalat with its highest level of
396 Fakhrunnas, et al., Effects of Macroeconomics Factors toward Efficiency in Banking

efficiency by 100 percent. Meanwhilem Bank reached 92.73 percent in 2016. This
BRI Syariah and Bank Mega Syariah have an increment can be said sharp enough as it
efficiency level more than 99 percent and reaches 49.05 percent within last five years.
Bank Mega Syariah with efficiency level by This upsurge is caused by better financial
94.387 percent. performance of Islamic banking as it can be
seen it Bank Victoria Syariah with perfect
After 2009, Islamic and conventional
efficiency in 2013, 2015 and 2016. Besides, the
banking has a declining level of efficiency
performance of Bank Muammalat is far
compared to previous years. The lowest point
better within the last three years, reaching
of efficiency level in Islamic and conven-
into 100 percent. This situation leads into
tional banking occurs at year 2012. The
nomination of Bank Muammalat as the best
efficiency of Islamic banking drops into its
Islamic bank in Indonesia based on efficiency
lowest point at 43.68 percent. The larger
level. There also other Islamic banks with 100
number of Islamic banks into eleven Islamic
percent efficiency in 2016, such as Bank BCA
banks has undeniable impact on average
Syariah, Bank Mega Syariah, Maybank
efficiency level of Islamic banking. This
Syariah, Bank Victoria Syariah and Bank BJB
phenomenon is also related to the perfor-
Syariah.
mance of each Islamic bank. In Appendix 1, it
can be seen that there is a significant drop in For conventional banking, the efficiency
efficiency level of Bank Muammalat and level is still lower than that of Islamic banks
Bank Syariah Mandiri as well as unstable in 2016, which only reaches 90.31 percent.
financial performances of new Islamic banks Despite its lower efficiency level, there is an
which push efficiency level of Islamic increment of performance as the conven-
banking into its lowest point at that time. tional bank attains 77.62 percent only in the
previous year. This increment comes from
On the other hand, even though
maximum efficiency level of six conventional
conventional banking has its lowest
banks, which are Bank Ekonomi, Bank
efficiency level at year 2012, it is still far
Capital, Bank MNC, Bank Arta Graha, Bank
better than Islamic banking which only
Indonesia India and Bank BNP.
attains 74.10 percent. This figure is 12.24
percent lower than it is in the previous year.
The Impact of Macroeconomic Factors on
This drop in efficiency level is caused by bad
Efficiency
performance of four conventional banks with
efficiency level below 60 percent, such as In the previous studies, Drake, Hall and
Bank Bumi Arta with efficiency level of 55.2 Simper (2005) asserted that macroeconomic
percent, Bank Indonesia India by 49.07 factors are the most influential one toward
percent, Bank Mayapada by 59.76 percent, banking efficiency in Hongkong. In line with
Bank Ekonomi by 55.79 percent and Bank their findings, Masood, Ashraf (2012), Karim,
BRI Argo by 58.38 percent. Al-Habshi, Abduh, (2016), Sanwari and
At the end of research period, the Zakaria (2013) also revealed that macroeco-
efficiency level of Islamic and conventional nomic factors, such as GDP growth, had
banking has been increasing during 2007- significant impact on banking profitability.
2016 after at its lowest point several years In order to see how far the impact of
ago. In Islamic banks, the efficiency level macroeconomic factors, this research uses
JEJAK Journal of Economics and Policy Vol 11 (2) (2018): 390 - 400 397

multiple regression test with estimation efficiency level of Islamic banking decreases
methods as follow: as the economic growth is higher.

𝐸𝑓𝑖𝑠𝑖𝑒𝑛𝑠𝑖𝑡 = 𝛽0 + 𝛽0 𝐼𝑛𝑓𝑡 + 𝛽0 𝐵𝐼_𝑅𝑎𝑡𝑒𝑡 The declining level of efficiency in

+ 𝛽0 𝐺𝐷𝑃𝐺𝑅𝑡 + 𝑒𝑡 Islamic banks might be as a result from two
factors. First, input perspective which refers
Where,
to inefficiency due to mismanagement of
Efficiencyt : The efficiency level of Islamic or
conventional banking at time t funding from third parties and operational
Inft : Inflation rate of Indonesia per cost. This inefficiency occurs as the Islamic
year at time t banks must spend higher costs in order to
BI_Ratet : Interest rate of Bank Indonesia compete in the midst of banking industry in
per year at time t Indonesia. Second, output perspective which
GDPGRt : Economic growth of Indonesia is in the context of suboptimal funding by
per year at time t Islamic banks in providing the funds for the
et : Error term customers as the economy grows.

Through our estimation model, we can Those two factors come from the
do multiple regression analysis by placing condition of Islamic banking which is not
efficiency level of Islamic and conventional leading in the context of economic of scale
banking as separated endogenous variable. compared to conventional banking. This
Meanwhile, Inf, BI_Rate and GDPGR is used condition occurs due to smaller size of
as exogenous variables. Islamic banks which requires them to spend
more expenses to compete in banking
Based on our multiple regression
industry and sometimes they cannot attain
analysis, Table 3 presents that efficiency level
the targeted financing with smaller asset
of Islamic and conventional banking is
size. This situation can be seen from the fact
affected by macroeconomic variables. For
that the higher the size of Islamic banking
Islamic banking, economic growth has
the higher the level of efficiency
positive and significant impact on efficiency
(Fakhrunnas, 2017).
level of Islamic banking at 10 percent level of
significance. This result implies that the

Table 3. Multiple Regression Analysis for Islamic and Conventional Banking

Islamic Banking Conventional Banking

Variable
Coefficient t-statistic t-statistic Probability

C 63,82 1.40 87.2 5.60***

Inf -2.69 -1.52 0.12 0.95
BI_Rate 4.45 0.49 -0.42 0.89
GDPGR -0.49 -2.09* 0.08 0.71
R-Square 0.27 0.033
Number of Observation 10 10

Significance level at 1%, 5% and 10% is respectively shown by symbol *, ** and ***
Source: Data processed by the researchers
398 Fakhrunnas, et al., Effects of Macroeconomics Factors toward Efficiency in Banking

Based on multiple regression result, the stakeholders to design the system of risk
efficiency level of conventional banking mitigation for Islamic banking which is
suggests that there is no significant relation- strong enough to tackle with global economy
ship between macroeconomic variables and shocks under high uncertainty. Even though
the efficiency level of conventional banking. there is macroeconomic factor which
This result implies that conventional bank is influences the performance of Islamic
better in mitigating external risk which may banking, the 2008 crisis does not have
come from turbulence of macroeconomic negative impact on the efficiency level of
condition. This condition is possible since Islamic banking as shown by the increment
the conventional banks have better concept of efficiency level within the crisis period.
in risk management as it can be seen from This situation is probably due to smaller
steady governance and more sophisticated asset size of Islamic banking in 2008 as there
technology (Ahmad & Rahim Abdul Rahman, are only five Islamic banks (Bank Muamalat,
2012). Bank Bukopin Syariah, Bank Mega Syariah,
Bank Syariah Mandiri and Bank BRI Syariah)
CONCLUSION within that year. This condition is contrast
This research suggests that there is a compared to the situation of Islamic banking
difference in efficiency of Islamic and in 2016 as there are more Islamic banks
conventional banking as it can be seen from operating in Indonesia. Not only in terms of
the efficiency level of respective bank. The number, but also their level of financial
average level of efficiency in Islamic banking performance is different.
within 2007-2016 shows the efficiency level After comparing the financial perfor-
by 74.54 percent. This suboptimal level of mance of Islamic and conventional banking,
efficiency can be interpreted that the Islamic it can be shown that conventional banking is
banks incur loss of potential earnings by better than Islamic banking in terms of its
25.44 percent. This loss comes from efficiency level which attains 85.78 percent
inefficiency in the Islamic banking itself on average in 2007-2016. This level of
which in turn curtails the growth of Islamic efficiency can be said well enough although
banking. In order to grow and becomes more there are still more works to do as there is a
competitive, Islamic banking needs to potential loss of income by 14.22 percent.
enhance work professionalism, particularly This efficiency level of conventional banking
in managing financial performance to be is also still better than Islamic banking as the
steadier. One way to do is by conducting size of the bank is larger.
rigorous monitoring in dominant factors The finding from multiple regression
which influence efficiency level of banking analysis also shows that external factors such
both positively and adversely (Bank as inflation rate, GDP growth, and Bank
Indonesia, 2014). Indonesia’ interest rate (SBI) do not have
Meanwhile, Islamic banking is still significant impact on the efficiency level of
vulnerable in dealing with macroeconomic conventional banking in Indonesia. This
factors, such as economic growth shown by result is supported by the data from DEA
the multiple regression analysis. This analysis that conventional banks have
situation should call the attention of declining level of efficiency as shown by
JEJAK Journal of Economics and Policy Vol 11 (2) (2018): 390 - 400 399

lower level of efficiency in 2008. This finding Economics, 3(1), 27–35.

implies that conventional banking is more Farrell, M. J. (1957). The Measurement of Pruductivite
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Table Scale Efficiency

No DMUs 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
1 Bank Muamalat 68,63 71,6 100,01749 32,894195 65,54 10,86 87,93 100 100 100
2 Bank Bukopin Syariah 91,23 94,384731 75,755585 76,66 63,171555 77,877825 82,8 98,8 84,2
3 Bank Panin Syariah 45,97 28,510939 43,40288 35,14 94,92238 100 100 66,6
4 Bank BCA Syariah 47,652132 38,963 20,058079 83,57438 100 100 100
5 Bank BNI Syariah 94,736842 97,604423 96,251172 52,3 100 100 95,7
6 Bank Mega Syariah 39,11 84,121667 99,063232 97,662771 93,646139 92,671395 52,134541 94,5 96,6 100
7 Bank Syariah Mandiri 100 50,85 57,57 31,86 24,8 15,37 56,79 74,7 100 98,3
8 Bank BRI Syariah 60,205696 99,932535 76,296848 56,596661 40,38783 64,524269 81,7 86,4 75,2
9 Maybank Syariah 94,645441 54,649748 33,624031 61,76 100 100 100
10 Bank Victoria Syariah 36,4 38,56 11,202216 100 58,4 100 100
11 Bank BJB Syariah 76,296848 77,440959 61,755319 98,2 61,6 100 100
12 Bank QNB 98,386648 100 99,598269 81,736268 81,438547 68,195371 88,201801 100 100 91,9
13 Bank Windu 89,541363 87,7 100 98,30094 96,895522 81,636397 88,481405 100 100 92,8
14 Bank Ekonomi 26,23 67,87 100 57,55 61,42 55,79 85,328615 96 100 100
15 Bank BRI Argo 93,386094 82,995872 58,376349 87,430032 92,6 93,4 99,8
16 Bank Sinarmas 83,75134 82,919419 99,14655 87,475698 100 88,187511 81,589695 57,4 63,2 56,1
17 Bank Capital 100 43,05 92,346557 99,636776 90,238048 63,522013 96,888944 100 93,5 100
18 Bank Saudara 93,963783 86,677838 100 100 87,698504 86,541971 81,694531 100 95,6 92,3
19 Bank Victoria 100 100 93,875471 91,224148 76,5 100 100 40,7 43,9 52,4
20 Bank MNC 62,47 100 99,951854 100 100 86,579276 88,224688 100 100 100
21 Bank Pundi 100 100 100 77,672559 89,581179 87,385677 54,88138 100 100 97,4
22 Bank Artha Graha 63,115307 82,46 100 85,17 85,14 80,06 87,354635 86 18,6 100
23 Bank Mayapada 99,03 85,141712 80,75 89,016018 98,3041 59,766867 82,4 100 20,7 98,3
24 Bank Indonesia India 95,929658 74,53 71,67 49,07 100 100 100 100
Fakhrunnas, et al., Effects of Macroeconomics Factors toward Efficiency in Banking

25 Bank BNP 99,191286 89,383716 100 99,436403 97,020924 91,24915 86,458333 100 100 100
26 Bank Bumi Arta 89,45 50,233129 89,187764 91,281182 76,230614 55,209867 85,207363 100 36 73,6