Analysis of the effect of bank size, credit risk, and capital adequacy on cost efficiency of banks in Indonesia (SFA method)

Many banks are competing to achieve bank cost efficiency for business continuity amidst the competition in banking sector. So need review cost-efficiency regularly. The purpose of this study was analyze determinants efficiency. Variable use size, capital adequacy, return on asset, group bank, credit risk, economic growth, and inflation Indonesia. Determination input output variables using a intermediation approach. This used panel data 38 Indonesia period 2012-2018. paper Stochastic Frontier Analysis (SFA) analysis method. results reveal four things. First, size has negative effect Second, risk positive Third, adequacy Fourth, small core Bank external do not affect