| dc.description.abstract | Many banks are competing to achieve bank cost efficiency for
business continuity amidst the competition in the banking sector.
So banks need to review cost-efficiency regularly. The purpose of
this study was to analyze determinants of bank cost efficiency.
Variable use bank size, capital adequacy, return on asset, group of
the bank, credit risk, economic growth, and inflation on bank cost
efficiency in Indonesia. Determination of bank input and output
variables using a bank intermediation approach. This study used
panel data on 38 banks in Indonesia for the period 2012-2018. This paper used the Stochastic Frontier Analysis (SFA) analysis
method. The results of this study reveal four things. First, bank
size has a negative effect bank cost efficiency. Second, credit risk
has a positive effect on bank cost efficiency. Third, capital
adequacy has a positive effect on bank efficiency. Fourth, the
small core capital bank group has a negative effect on bank cost
efficiency. Bank external variables do not affect bank cost
efficiency in Indonesia. | en_US |
