Abstract
This study estimates the banking efficiency in the Province of West Sumatera for the years of 2007-2008. Using 19 samples of commercial banks, the estimation applies the Stochastic Frontier Approach (SFA) model in order to analyze the cost efficiency of commercial banks. This study finds that the bank's cost function is significantly affected by price of labors, price of funds, and loans. The results of the banking efficiency estimation show that in annually almost banks have more than 80 percent of the efficiency level. In the average estimation, it also shows the same result. By dividing banks into groups, the estimation shows that the government bank is more efficient than the national private bank.
References
Astiyah, S., & Husman, J. A (2005). Fungsi Intermediasi dalam Efisiensi Perbankan di Indonesia: Derivasi Fungsi Profit. Direktorat Riset Ekonomi dan Kebijakan Moneter, Biro Riset Ekonomi. Bank Indonesia.
Baltagi, B. H. (2001). Econometrics Analysis of Panel Data. John Wiley & Sons, Ltd.
Bank Indonesia. Statistik Ekonomi dan Keuangan Daerah Sumatera Barat.
Berger, A N., & Mester, L. J. (1997). Efficiency and Productivity Change in the U.S. Commercial Banking Industry: a Comparison ot the 1980s and 1990s. Research Department, Federal Reserve Bank of Philadelphia.
Berger, A N., & Mester, L. J. (1997). Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institution. Journal of Monetary Economics, 21.
Berger, A N., & Mester, L. J. (1991). The Dominance of Inefficiencies Over Scale and Product Mix Economies in Banking. Journal of Monetary Economics, 28.
Berger, A N., Berger, J. H., & Mingo, J. J. (1997). The Efficiency of Bank Branches. Journal of Monetary Economics , 40.
Berger, AN., Humprey, D. B., & Pulley, L.B. (1996). Do Consumers Pay for One-Stop Banking? Evidence from an Alternative Revenue Function. Journal of Banking and Finance, 20.
Carlson, M., & Mitchener, K J. (2005). Branch Banking, Bank Competition, and Financial Stability. Washington D.C.: Divisions of Research and Statistics and Monetary Affairs, Federal Reserve Board.
Cottarelli, C., & Kourelis, A. (1994). Financial Structure, Bank Lending Rates, and the Transmission Mechanism of Monetary Policy. Washington D.C.: IMF.
Drake, L., & Hall, M. J. (2003). Efficiency in Japanese Banking: an Empirical Analysis. Journal of Banking and Finance (27).
Freixas, X., & Rochet, J.C.{1997). Microeconomics of Banking. Cambridge: MIT Press.
Grosskopf, S. (1996). Statistical-Inference and Non Parametric Efficiency a Selective Survey. Journal of Productivity Analysis, 7, 161-176.
Gujarati, D. (2004). Basic Econometrics (4th Edition). Mc-Graw Hill.
Hadad, M. D., Santoso, W., Ilyas, D., & Mardanugraha, E. (2003b). Analisis Efisiensi Industri Perbankan Indonesia: Penggunaan Metode Non-Parametrik 'Data Envelopment Analysis (DEA). Direktorat Penelitian dan Pengaturan Perbankan, Bank Indonesia.
Hadad, M. D., Santoso, W., Mardanugraha, E., & Ilyas, D. (2003a). Pendekatan Paramaterik untuk Efisiensi Perbankan Indonesia. Direktorat Penlitian dan Pengaturan Perbankan, Bank Indonesia.
Hausman, J. A (1978). Spesification Tests in Econometrics. Econometrica, 46.
Judge, G. G., Hill, C. R., Griffiths, W. E., Liltkepohl, H., & Lee, T. C. (1980). Theory and Practice of Econometrics. New York: John Wiley & Sons.
Lang, G., & Welzel, P. (1996). Efficiency and Technical Progress in Banking Empirical Results for a Panle of German Cooperative Banks. Journal of Banking and Finance, 20.
Yamazak, S., & Miyamoto, H. (2004). A Note on Bank Behavior and Monetary Policies in a Oligopolistic Market. Tokyo: Keio University.
Recommended Citation
Ramadhan, Gaffari
(2009)
"Estimasi Efisiensi Bank-Bank Umum di Sumatera Barat Melalui Metode Stochastic Frontier Approach (SFA),"
Jurnal Ekonomi dan Pembangunan Indonesia: Vol. 10:
No.
1, Article 1.
DOI: 10.7454/jepi.v10i1.2199
pp.1-21
Available at:
https://scholarhub.ui.ac.id/jepi/vol10/iss1/1
