Analysis of Efficiency in Post-Merger Banks Using the Two-Stage DEA Method: A Case Study of BSI

Abstract

This study analyzes the efficiency of Bank Syariah Indonesia (BSI) post-merger using the Two-Stage Data Envelopment Analysis (DEA) method. The merger of Bank Syariah Mandiri, BNI Syariah, and BRI Syariah was expected to improve BSI’s operational efficiency, focusing on resource management, financing, and product access. The primary objective of this study is to evaluate the relative efficiency of these banks before and after the merger, as well as to analyze the impact of external factors such as Firm Size, Non-Performing Financing (NPF), Return on Assets (ROA), Financing to Deposit Ratio (FDR), and Capital Adequacy Ratio (CAR) on efficiency. The methodology used includes DEA with Constant Return to Scale (CRS) and Variable Return to Scale (VRS) models, followed by Tobit regression analysis to identify the influence of external variables. The results indicate that although BSI achieved full efficiency in 2023, the Scale Efficiency (SE) value in the previous years was still below 100, suggesting that BSI and other Islamic banks were still operating at non-optimal scales. Firm size was found to have a positive and significant impact on efficiency, while CAR had a negative but insignificant effect. FDR, NPF, and ROA showed significant effects on efficiency. This study provides recommendations to improve the efficiency of Islamic banking through the enhancement of firm size and better management of financing.