Determinants of Banking Efficiency and its Impact on Banking Competitive Advantage

This paper aims to identify the level of competition and the level of banking efficiency and develop a conceptual framework to examine the effect of the level of banking competition, the characteristics of banks on efficiency and competitive advantage of banking. To discuss the topic studied in this paper, the Literature Review method is used. The steps in creating a literature review are described as follows: First, determine the sources for the review literature material that is in accordance with the topic of this paper. Secondly, evaluating the contents contained in the sources of the literature study that was determined. Third, make a summary of the contents of the literature study resources. And fourth, explore new thoughts and ideas on topics that are subject to study to determine the positioning of the concept as the material for subsequent research. This finding shows that the level of competition, characteristics of banks influence in increasing competitive advantage through efficiency in the banking sector.