Determinants of Banking Efficiency: Technical Review, Allocations and Costs in Indonesian Sharia Business throughout 2011-2020

The high value of Operating Expenses and Operating Income (BOPO) is an important problem to be controlled immediately because if this trend is not controlled, it will be very unconducive to the overall performance of Islamic banks in the long term. This research explores Banking Efficiency in each of Technical Efficiency, Allocation Efficiency, and Cost Efficiency, and the perspective of the factors that influence them regarding Governance, Risk, and Compliance (GRC), Gross Domestic Product (GDP), and Inflation. This research uses a quantitative approach with two methods: the DEA method and regression. The research results show that the Sharia Business Efficiency Level, which varies over 10 years, is influenced by Governance, Risk, and Compliance (GRC). However, GDP and Inflation also influence the Efficiency Level simultaneously. It is hoped that the results of this research can be a reference in comprehensively evaluating Indonesia's Gross Domestic Product (GDP) for 10 years, so that it can show a more complex and reflective representation of Sharia banking efficiency for the long-term development of the Sharia economy through Sharia businesses.