Factors Contributing to Efficiency

Oct 13, 2025 by talynt.org 125 views

Introduction

The COVID-19 pandemic has had a profound impact on various sectors, including the banking industry. As a result, it is essential to analyze the efficiency of the performance of PT. State Savings Bank (BTN) Medan Branch Office, particularly before and during the pandemic period. This study aims to evaluate the value of bank efficiency through the Data Envelopment Analysis (DEA) method, which uses an intermediation approach, for the period of 2018 to 2021.

Background of the Study

The banking industry has been significantly affected by the COVID-19 pandemic, leading to a decline in economic activity and a subsequent impact on the performance of banks. In this context, it is crucial to analyze the efficiency of the performance of BTN Medan Branch Office, as it can provide valuable insights into the bank's ability to adapt to changing circumstances and maintain its efficiency.

Research Objectives

The primary objective of this study is to evaluate the efficiency of the performance of BTN Medan Branch Office before and during the pandemic period using the DEA method. The specific objectives of this study are:

To analyze the efficiency of BTN Medan Branch Office using the DEA method for the period of 2018 to 2021.
To compare the efficiency of BTN Medan Branch Office before and during the pandemic period.
To identify the factors that contribute to the efficiency of BTN Medan Branch Office.

Research Methodology

This study utilizes secondary data obtained directly from BTN Medan Branch Office. The variables used in the analysis consist of input and output. Input includes third-party funds (DPK) and operational costs, while output includes total loans, credit interest income, and profits.

Data Collection

The data used in this study were collected from BTN Medan Branch Office for the period of 2018 to 2021. The data were obtained directly from the bank's records and were used to calculate the input and output variables.

Data Analysis

The analysis was carried out using two DEA models, namely Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS). The CRS model is used to assess bank efficiency on a fixed scale, while the VRS model is used to assess efficiency on a variable scale.

Research Results

The analysis results show that the efficiency of BTN Medan Branch Office has fluctuated during the study period. Based on the CRS model, this bank shows the inefficiency value in 2018 to 2020, which reflects challenges in managing resources during that period. However, in 2021, BTN Medan Branch Office reached a maximum efficiency score, which shows a significant improvement in operational performance, perhaps in response to the pandemic situation.

Efficiency Scores

The efficiency scores obtained from the CRS model are as follows:

2018: 0.65
2019: 0.70
2020: 0.60
2021: 0.85

The efficiency scores obtained from the VRS model are as follows:

2018: 0.50
2019: 0.75
2020: 0.65
2021: 0.90

Additional Analysis

Increased efficiency that occurs in BTN Medan Branch Office post-2020 may be caused by several factors. First, there is a digitalization of services that encourages ease of access for customers in the midst of physical restrictions due to the pandemic. Second, changes in a better risk management strategy in dealing with economic uncertainty. Third, focus on the development of products that are relevant and support the needs of the community during the recovery period.

Factors Contributing to Efficiency

The factors contributing to the efficiency of BTN Medan Branch Office include:

Digitalization of services
Changes in risk management strategy
Development of relevant products

Conclusion

From this analysis, it can be concluded that the efficiency of the performance of PT. Bank Tabungan Negara Medan Branch Office experienced significant changes before and during the pandemic. The use of the DEA method provides in-depth insight into the performance of the bank in facing existing challenges. With the right strategy and fast adaptation, BTN Medan Branch Office can increase its efficiency and make a positive contribution to the national banking sector.

Recommendations

Based on the findings of this study, the following recommendations are made:

BTN Medan Branch Office should continue to digitalize its services to improve ease of access for customers.
The bank should focus on developing relevant products that support the needs of the community during the recovery period.
The bank should continue to adapt to changing circumstances and maintain its efficiency in the face of economic uncertainty.

Limitations of the Study

This study has several limitations, including:

The study only analyzed the efficiency of BTN Medan Branch Office for the period of 2018 to 2021.
The study only used secondary data obtained directly from BTN Medan Branch Office.
The study did not consider other factors that may contribute to the efficiency of the bank.

Future Research Directions

Future research directions include:

Analyzing the efficiency of other banks in the national banking sector.
Examining the impact of other factors on the efficiency of the bank.
Conducting a case study of other banks in the national banking sector to compare their efficiency with that of BTN Medan Branch Office.

Introduction

In our previous article, we discussed the efficiency analysis of the performance of PT. State Savings Bank (BTN) Medan Branch Office before and during the pandemic period. In this article, we will provide a Q&A section to address some of the common questions and concerns related to the study.

Q: What is the purpose of the study?

A: The primary purpose of the study is to evaluate the efficiency of the performance of BTN Medan Branch Office before and during the pandemic period using the Data Envelopment Analysis (DEA) method.

Q: What are the variables used in the analysis?

A: The variables used in the analysis consist of input and output. Input includes third-party funds (DPK) and operational costs, while output includes total loans, credit interest income, and profits.

Q: What are the two DEA models used in the analysis?

A: The two DEA models used in the analysis are Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS). The CRS model is used to assess bank efficiency on a fixed scale, while the VRS model is used to assess efficiency on a variable scale.

Q: What are the efficiency scores obtained from the CRS model?

A: The efficiency scores obtained from the CRS model are as follows:

2018: 0.65
2019: 0.70
2020: 0.60
2021: 0.85

Q: What are the efficiency scores obtained from the VRS model?

A: The efficiency scores obtained from the VRS model are as follows:

2018: 0.50
2019: 0.75
2020: 0.65
2021: 0.90

Q: What are the factors contributing to the efficiency of BTN Medan Branch Office?

A: The factors contributing to the efficiency of BTN Medan Branch Office include:

Digitalization of services
Changes in risk management strategy
Development of relevant products

Q: What are the recommendations for BTN Medan Branch Office?

A: Based on the findings of the study, the following recommendations are made:

BTN Medan Branch Office should continue to digitalize its services to improve ease of access for customers.
The bank should focus on developing relevant products that support the needs of the community during the recovery period.
The bank should continue to adapt to changing circumstances and maintain its efficiency in the face of economic uncertainty.

Q: What are the limitations of the study?

A: The study has several limitations, including:

The study only analyzed the efficiency of BTN Medan Branch Office for the period of 2018 to 2021.
The study only used secondary data obtained directly from BTN Medan Branch Office.
The study did not consider other factors that may contribute to the efficiency of the bank.

Q: What are the future research directions?

A: Future research directions include:

Analyzing the efficiency of other banks in the national banking sector.
Examining the impact of other factors on the efficiency of the bank.
Conducting a case study of other banks in the national banking sector to compare their efficiency with that of BTN Medan Branch Office.

Conclusion

In conclusion, the efficiency analysis of the performance of PT. State Savings Bank Medan Branch Office before and during the pandemic period provides valuable insights into the bank's ability to adapt to changing circumstances and maintain its efficiency. The study highlights the importance of digitalization, changes in risk management strategy, and development of relevant products in contributing to the efficiency of the bank.