STRENGTHENING FINANCIAL SYSTEM STABILITY THROUGH ENHANCING INTERMEDIARY FUNCTION AND EFFICIENCY OF BANK PEMBANGUNAN DAERAH (REGIONAL DEVELOPMENT BANK)

https://doi.org/10.22146/jieb.6332

Endri Endri(1*)

(1) ABFI Institute Perbanas Jakarta
(*) Corresponding Author

Abstract


This paper analyzes the function of the regional development banks (BPD) as an intermediary institution using the loan to deposit ratio (LDR) and Bank Indonesia Certificate to deposit ratio (SDR) and efficiency performance with data envelopment analysis (DEA) approach with data during 2006-2007 covering 26 BPD in Indonesia. The result of study indicates that the regional development banks do not play its optimal role as the intermediary institution and efficiency performance do not achieve the level of maximum 100 persen. For getting the optimal function of banking intermediary and promoting better efficiencies, BPD needs to design some steps of the grand strategy that can be developed in the future, that is: the limitation of funds placed by BPD in Bank Indonesia Certificate notes, inter BPD networking, focus on market segmentation, diversification source of funds, and creating local credit guaranting institutions.


Keywords: bank efficiency, bank intermediary, loan to deposit ratio (LDR), SBI to deposit ratio (SDR), data envelopment analysis (DEA)


Full Text:

PDF PDF



DOI: https://doi.org/10.22146/jieb.6332

Article Metrics

Abstract views : 270 | views : 147 | views : 116

Refbacks

  • There are currently no refbacks.




Copyright (c)



Journal of Indonesian Economy and Business

Journal

Editorial Team
Focus and Scope
Peer Review Process
Publication Ethics
Screening for Plagiarism

Authors

Author Guidelines
Submission Guidelines
Online Submissions
Copyright Notice
Privacy Statement
Author Fees

Download

Author Pack
Submission Form & Manuscript Template

 

Reviewer

Reviewer Guidelines
Reviewer Acknowledgement

 

Reader

General Search
Achieves
Author index
Title index

 

 

The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

© 2019 Journal of Indonesian Economy and Business 
 Visitor Statistics