CUSTOMER-COMMUNITY EFFICIENCY OF ISLAMIC BANKS COMPARED TO NON-ISLAMIC BANKS IN INDONESIA FROM 2010 TO 2016

• Main Author: Sri Rejeki (NIM 19014083), Tari
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24472
• Institution: Institut Teknologi Bandung

Islamic banks in Indonesia has the higher efficiency than non-Islamic banks, and the Islamic bankshas the good reputation in the country with the Muslim minority. Based on the analysis of vision and mission statement of banks in Indonesia, the concern of Islamic banks to customer and community is higher than non-Islamic banks. The Customer and community satisfaction is measured by total loans and total deposits earned by banks. This study to prove the statement of Islamic banks and also to see <br /> <br /> the movement of customer-community efficiency of Islamic and non-Islamic banks from 2010-2016. The study focus on the growth of market share calculated from total deposits, if the growth of total deposits increases then market share will also increase. This research will measure the customercommunity efficiency from Islamic banks and compare to non-Islamic banks from 2010 to 2016. The Variable Return to Scale DEA is used to measure the customer and community efficiency of banks. Then the Mann-Whitney test is used to determine whether the annual frontier customer-community efficiency in 2010 to 2016 of Islamic banks differ from the non-Islamic banks in Indonesia. Analysis the trend or movement of customer-community efficiency from Islamic and non-Islamic banks is based on the single multiyear DEA result. To determine of correlation between customer-community efficiency and market share in this study is using the Spearman's correlation. The result of this research is, based on the DEA annual frontier results show that only in 2010 the <br /> <br /> fficiency of Islamic banks and non-Islamic banks is not significant difference. The Single multiyear results show that the customer-community efficiency of Islamic banks in 2010 to 2013 actually ups and downs. But in 2014-2016 the Islamic banks show a positive trend and begin to pursue non-Islamic bank but the efficiency is not as big as the non-Islamic bank's efficiency. Similar to non-Islamic banks, Islamic banks have the significant correlation between the customer-community efficiency and the market share, and also the correlation is strong. <br /> <br /> The conclusion of this research is the customer-community efficiency of Islamic banks is lower than non-Islamic banks used in this study and the movement of efficiency Islamic banks actually up and down from 2010-2013, but in 2014-2016 the result shows that the efficiency is increasing every year.The correlation result shows that there is significant correlation between customer-community efficiency of Islamic banks and market share. It means that good services of banks affect the market <br /> <br /> share. The result means that if the customer-community efficiency increases then the market share of banks also increases. Many factors can affect the market share of banks such as economic conditions, IT used by banks to serve the customers and the community, and accessibility.