An Analysis of Efficiency Technique Level of Rural Bank by Using Data Envelopment Analysis (DEA)

Purpose - The purpose of this research is to measure the efficiency technique level of Rural Banks in 20132014 by using a Data Envelopment Analysis (DEA) method, by BANXIA software. Design/methodology/approach - The approach used to choose the input and output is intermediation approach. The Input used is a factor of assets, deposits and personnel expenses. The output factors used are credit and other operating income. Findings - The use of the input and output of rural banks in the area of Bandung from the year 2013-2014 by using the DEA has not reached optimum efficiency. BPR scale efficiencies in the area of Bandung with DEA method is at the stage Decreasing Return to Scale. Originality/value - This study provides a basis for understanding efficiency in banking. This is a good contribution to the world's knowledge of financial management that addresses the banking efficiency and provide solutions to the problems faced by the banking industry in Indonesia, especially rural banks.