DETERMINING FACTOR OF EFFICIENCY IN COMMERCIAL BANKS

Abstract

The research aim is to examine the significant influences of ROE, NPL, LDR, NIM and BOPO towards efficiency in commercial banks listed in Indonesia Stock Exchange. This is a quantitative research which taken data from commercial banks audited financial statement. There are five independent variables partially and simultaneously through purposive sampling with panel data regression using EViews 10 and the dependent variable through observing the efficiency by applying Data Envelopment Analysis (DEA) approach. The population of this research is commercial banks in Indonesia and took 10 samples of commercial banks fulfilled certain criteria in period of 2012-2018 annually. Since the dependent variable contained in this research is the efficient level of banking operational that are measured using the DEA method, based on the intermediation approach the input consists of labor expenses, total assets and deposits while the output consists of income and loan. Technique used of multiple linear regression on panel data is Fixed Effect Model. The outcomes reveal a value of adjusted R-squared among dependent variable is 39.26% and the variables of ROE and LDR have positive significant effect, meanwhile NPL and NIM have negative significant effect and BOPO has no significant effect on efficiency.