ANALYSIS OF THE EFFICIENCY OF CONVENTIONAL AND SHARIA BANKING IN INDONESIA (BEFORE AND DURING COVID-19 PANDEMIC)

Abstract

This study aims to determine the level of efficiency of Conventional Banks and Sharia Banks in Indonesia before the Covid-19 pandemic and during the Covid-19 pandemic. The variables used in this study are profit, credit/financing, third party funds, total assets, labor costs and operating costs. The analytical tool used in this study is Data Envelopment Analysis (DEA) with a Constant Return to Scale (CRS) approach. The samples used in this study were 9 Conventional Commercial Banks (BUK) and 6 Sharia Commercial Banks (BUS). The results of this study show that before the Covid-19 pandemic in 2018 there were 3 BUK that experienced perfect efficiency, while at the beginning of the Covid-19 pandemic in 2019 there were 4 BUK that experienced perfect efficiency. Then during the Covid-19 pandemic in 2020-2021 there were 4 BUK and 1 BUS operating efficiently. Meanwhile, BUK that has a relatively stable efficiency value before and during the Covid-19 pandemic are BTN, BCA and BUK Central Java.