Assessing the Performance Efficiency of Conventional Rural Bank (BPR) and Islamic Rural Bank (BPRS) in Banyumas Area Using Data Envelopment Analysis

Abstract

This research is entitled “Assessing the Performance Efficiency of Conventional Rural Bank (BPR) and Islamic Rural Bank (BPRS) in Banyumas Area Using Data Envelopment Analysis”. The objectives of this research are: to analyze the efficiency of Conventional Rural Bank (BPR) and Islamic Rural Bank (BPRS) financial performance using the DEA analysis; and to compare the efficiency between Conventional Rural Bank (BPR) and Islamic Rural Bank (BPRS) since 2008-2009. The hypotheses are the Conventional Rural Bank (BPR) and Islamic Rural Bank (BPRS) has an efficient financial performance and, the Conventional Rural Bank (BPR) is more efficient as compared to Islamic Rural Bank (BPRS). The method analysis in this research is data envelopment analysis (DEA). Based on the results of the analysis and discussion, it can be concluded that the Conventional Rural Bank (BPR) and Islamic Rural Bank (BPRS) has an efficient financial performance and, the Conventional Rural Bank (BPR) is more efficient as compared to Islamic Rural Bank (BPRS). Based on the conclusions, the implications could be made as follows: This research is only done at the conventional rural bank (BPR) and Islamic rural banks (BPRS) in Banyumas area. It is strongly advise that future studies should involve all conventional rural bank and Islamic rural bank, so that the result could reflect the efficiency of all conventional rural bank (BPR) and Islamic rural bank (BPRS).