IDEAS home Printed from https://ideas.repec.org/a/ids/ijbire/v25y2021i4p514-536.html
   My bibliography  Save this article

Rural banks' efficiency in Bali Province Indonesia in the era of high competition and financial technology

Author

Listed:
  • Mokhamad Anwar
  • Sulaeman Rahman Nidar
  • Ratna Komara
  • Layyinaturrobaniyah

Abstract

This is a study of the estimation of rural bank efficiency in Bali Province Indonesia in the new era of financing policies on micro and small businesses and the development of financial technology during the period of 2012-2017. The study employs data envelopment analysis in estimating the efficiency of those rural banks in the region. The findings of this study reveal a decrease in average technical efficiency of rural banks in Bali over the period. Local government-owned banks experienced a greater decline than private banks. Inferential findings reveal that bank profitability, loans, operating costs, general and administrative expenses, bank size, and inflation rates are important factors in explaining the performance of rural banks' efficiency in Bali Indonesia. These findings bring several implications for rural banks' management to consider establishing internal policies as well as anticipating the environmental variable in terms of inflation rate in increasing their technical efficiency.

Suggested Citation

  • Mokhamad Anwar & Sulaeman Rahman Nidar & Ratna Komara & Layyinaturrobaniyah, 2021. "Rural banks' efficiency in Bali Province Indonesia in the era of high competition and financial technology," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 25(4), pages 514-536.
    • Handle: RePEc:ids:ijbire:v:25:y:2021:i:4:p:514-536
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=117091
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbire:v:25:y:2021:i:4:p:514-536. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=203 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.