Productivity Determinants of Islamic Banks in Indonesia: Two-Stage Malmquist Productivity Index

Authors

  • Mutiara Ramadhani Putri Department of Islamic Economics, Faculty of Economics and Business Universitas Airlangga, Indonesia
  • Puji Sucia Sukmaningrum Department of Islamic Economics, Faculty of Economics and Business Universitas Airlangga, Indonesia

DOI:

https://doi.org/10.22219/jes.v7i1.17365

Abstract

Islamic Banks in Indonesia experienced a general increase in productivity during the observation period influenced by factors of technological change. This study aims to measure Islamic Banks' productivity level and productivity determinants in Indonesia. This study was quantitatif using Malmquist Productivity Index to measure the level of productivity of Islamic banks. Meanwhile, panel data regression was used to analyze the determinants of productivity. The result foun that Return on Assets (ROA) and Financing to Deposit Ratio (FDR) has significantly affect productivity changes, whole Capital Adequacy Ratio (CAR) has a significant negative effect. The result provides a valuable contribution for consideration regarding managing existing resources to produce optimal output. Bank management can invest in technology and innovation in distributing banking products and services. Islamic bank management also needs to pay attention to the determinants which affect productivity growth.

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Published

2022-02-27

How to Cite

Mutiara Ramadhani Putri, & Sukmaningrum, P. S. . (2022). Productivity Determinants of Islamic Banks in Indonesia: Two-Stage Malmquist Productivity Index. Falah: Jurnal Ekonomi Syariah, 7(1), 24–34. https://doi.org/10.22219/jes.v7i1.17365

Issue

Section

Journal Article