Mapping of Efficiency and Profitability in Islamic Rural Bank in Indonesia

Abstract

Currently, many Islamic Rural Banks (BPRS) are operating in the areas of Regency, where level of competitive among Islamic Rural Banks is also increasing dramatically. These require Islamic Rural Banks (BPRS) to manage funds efficiently in ways optimal profitability. This study tried to analyze the matrix of efficiency and profitability on Islamic Rural Banks (BPRS) in Indonesia, and also to analyze the factors that affect the efficiency of the Islamic Rural Banks (BPRS).The matrix of efficiency and profitability is computed through three models, namely the model of CRS, VRS and scale models. Results of the study show that the matrix of efficiency and profitability in all three models are a model of efficiency levels CRS, VRS, and scale in 2012 and 2011 which is showed that the results are not much different. The number of Islamic Rural Banks (BPRS) is the most in a group of dog, namely, Islamic Rural Banks (BPRS) with a high level of efficiency but low levels of profitability.