Pengaruh Efisiensi terhadap Efektivitas Bank sebagai Sebuah Lembaga Intermediasi 2004–2008

This study reviewes how the banks’ efficiency affects their performance which represented by the effectiveness scores of the banks. Rather than using traditional financial ratios, this research used the efficient frontier approach method called Data Envelopment Analysis Model (DEA) to measure the efficiency and the effectiveness scores of the banks operate for 2004-2008 period. This paper defines the efficiency score as the reflection of the banks’ capability in minimizing the multi-input used in terms of multi-banking products creation (sales creation). Meanwhile, the effectiveness scores show the banks’ capability to maximize their profitability through the products/sales they had sold to the customer. The study findings suggest that the banks’ effectiveness depend on the efficiency level of the banking unit. Moreover, the bank’s size positively affects the bank’s effectiveness. This paper also found that there are differences in effectiveness scores within the banks operate in Indonesia classified by their types.