Open AccessFUNGSI INTERMEDIASI DALAM EFISIENSI PERBANKAN DI INDONESIA: DERIVASI FUNGSI PROFIT
Author(s) -
Siti Astiyah,
Jardine A. Husman
Publication year - 2007
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 2460-9196
DOI - 10.21098/bemp.v8i4.148
Subject(s) - intermediation , profit (economics) , frontier , financial intermediary , central bank , business , indonesian , economics , microeconomics , financial system , monetary economics , finance , political science , monetary policy , law , linguistics , philosophy
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 important 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 that 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.Keyword: efficiency, profit function, stochastic frontier, bank intermediary, IndonesiaJEL: C52, E51, E58