PENGARUH EFISIENSI BIAYA PERBANKAN DI KAWASAN ASEAN- 5

Abstract

Abstract. This study examines determinants of   cost efficiency of   banking operation in ASEAN-5 region which includes Indonesia, Singapura, Malaysia, the Philippines, and Thailand. By using stochastic frontier analysis (SFA) to 23 commercial banks in the region in the period of   2005-2012, empirical results reveal certain significant relationship of   cost efficiency with individual bank characteristic (return on equity, ROE). Based on the time-varying decay method, we conclude that there is an increase in cost efficiency during the period of  study. This study also shows that in general, Indonesian banking industry was not operating efficiently. Keywords: ASEAN-5, cost efficiency, banking, SFA, time-varying decay