Efficiency of Islamic Banks Using Data Envelopment Analysis (DEA) in Indonesia, 2007-2010

Abstract

The purpose of this study is to analyze the efficiency level of Islamic Banks (Bank Muamalat Indonesia, Bank SyariahMandiri, Bank Mega Syariah) in Indonesia through the input-output variables that correspond to the economic theory of the years 2007-2010, using the method of Data Envelopment Analysis (DEA). There are five important variables in this research that the input variables of bank is operating costs (I₁), labor costs (I₂) and banking services (I₃), while the output variables is total deposits(O₁) and deposits (O₂).