Strategy to Increase the Efficiency of Sharia Banks
DOI:
https://doi.org/10.58968/eii.v7i2.698Keywords:
Sharia Bank Efficiency, Delphi Method, Business Strategy, Expert Consensus, IndonesiaAbstract
Efficiency is one of the main challenges faced by the Islamic banking industry in Indonesia, especially in the face of competitive pressures, limited business scale, and performance sustainability demands. This study aims to identify and prioritize strategies to improve the efficiency of Islamic banks in Indonesia based on the views of experts. The method used is the Delphi method involving nine expert respondents consisting of academics, practitioners, and Islamic banking regulators. The analysis was carried out using statistical indicators in the form of mean values, standard deviations, and interquartile range (IR) to measure the consensus level. The results of the study showed that of the twelve variables of the strategy to improve the efficiency of Islamic banks, ten variables reached a consensus, while two variables were declared non-convergent. The three main strategies prioritized by experts are increasing revenue, optimizing branch office networks, and increasing organizational effectiveness. These findings provide strategic implications for Islamic bank management and regulators in formulating more targeted and sustainable efficiency improvement policies.
Downloads
References
Al-Tamimi, H. A. H., & Charif, H. A. (2011). Multiple factors influencing the performance of Islamic banks in the UAE. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 98–112. https://doi.org/10.1108/17538391111144415
Ariss, R. T. (2010). Competitive conditions in Islamic and conventional banking: A global perspective. Review of Financial Economics, 19(3), 101–108. https://doi.org/10.1016/j.rfe.2010.03.002
Ascarya. (2017). Sharia bank contracts and products. Jakarta: Rajawali Press.
Ascarya, & Yumanita, D. (2018). Determining the efficiency of Islamic banks in Indonesia using data envelopment analysis. Journal of Islamic Monetary Economics and Finance, 4(2), 309–334. https://doi.org/10.21098/jimf.v4i2.931
Beck, T., Demirgüç-, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking & Finance, 37(2), 433–447. https://doi.org/10.1016/j.jbankfin.2012.09.016
Chapra, M. U., & Ahmed, H. (2002). Corporate governance in Islamic financial institutions. Jeddah: Islamic Development Bank & Islamic Research and Training Institute.
Hassan, M. K., & Aliyu, S. (2018). A contemporary survey of Islamic banking literature. Journal of Financial Stability, 34, 12–43. https://doi.org/10.1016/j.jfs.2017.11.006
Hassan, M. K., & Lewis, M. K. (2007). Islamic banking: An introduction and overview. In M. K. Hassan & M. K. Lewis (Eds.), Handbook of Islamic banking (pp. 1–16). Cheltenham: Edward Elgar Publishing.
Hsu, C.-C., & Sandford, B. A. (2007). The Delphi technique: Making sense of consensus. Practical Assessment, Research & Evaluation, 12(10), 1–8. https://doi.org/10.7275/pdz9-th90
Isik, I., & Hassan, M. K. (2002). Technical, scale and allocative efficiencies of Turkish banking industry. Journal of Banking & Finance, 26(4), 719–766. https://doi.org/10.1016/S0378-4266(01)00167-4
Linstone, H. A., & Turoff, M. (2002). The Delphi method: Techniques and applications. Newark, NJ: New Jersey Institute of Technology.
Rusydiana, A. S., & Marlina, L. (2019). Financial And Social Efficiency On Indonesian Islamic Banks: A Non-Parametric Approach. Journal of Islamic Monetary Economics and Finance, 5(3), 579-602.
Rusydiana, A. S., & Nugroho, T. (2017). Measuring efficiency of Islamic banking in Indonesia: Data envelopment analysis approach. Global Review of Islamic Economics and Business, 5(1), 12–24. https://doi.org/10.14421/grieb.2017.051-02
Sufian, F. (2011). Benchmarking the efficiency of the Islamic banking sector: A DEA approach. Benchmarking: An International Journal, 18(1), 54–73. https://doi.org/10.1108/14635771111109845.
