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Fungsi Intermediasi Dalam Efisiensi Perbankan Di Indonesia: Derivasi Fungsi Profit

Author

Listed:
  • Siti Astiyah

    (Bank Indonesia)

  • Jardine A. Husman

    (Bank Indonesia)

Abstract

This paper analyze the bank efficiency in Indonesia by deriving the profit function. We apply the stocahstic frontier approach on monthly data during 2001:01 ? 2004:12, covering the 20 largest asset banks. We incorporate the function of the bank as an intermediary institution by including the intermediary stressing variable on the profit function. This is impotant to capture the possibility when the large profit is gathered from non-operational profit sources such as recap fund or SBI. The result of the study indicate that the average efficiency of the model with intermediary stressing is lower than without intermediary stressing. The 5 largest efficient bank without considering the intermediation stressing, in fact becomes the lowest efficient bank when the model include the intermediary stressing. The findings implies may have a great implication of the Indonesian central policy, when a higher support to real sector is preferred.

Suggested Citation

  • Siti Astiyah & Jardine A. Husman, 2006. "Fungsi Intermediasi Dalam Efisiensi Perbankan Di Indonesia: Derivasi Fungsi Profit," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 8(4), pages 529-544, March.
    • Handle: RePEc:idn:journl:v:8:y:2006:i:4e:p:529-544
    DOI: https://doi.org/10.21098/bemp.v8i4.148
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    More about this item

    Keywords

    Efficiency; profit function; stochastic frontier; bank intermediary; Indonesia;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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