The Trend of Diversification of Banks’Service Activities in Taiwan

• Main Authors: Tien-Yu Su, 蘇點宇
• Other Authors: Yeh-Ning Chen
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/86978940172027247945

碩士 === 國立臺灣大學 === 財務金融學研究所 === 87 === The establishment of new commercial banks is an important product of recent policy of financial deregulation, having overwhelming influence on the whole financial system. Theoretically speaking, the increase of participants contributes to the formation of competitive environment, and it promotes the product diversification. Whether or not the product diversification of the existing banks in Taiwan are improved under the dramatic competition of the new banks? What are the different reaction between the public and the private banks? Those are all of motivation of this research. The methodoelgies are: 1. According to descriptive statistics, to analysis the trend of diversification of banks in Taiwan. 2. In this thesis, we distinguish bank’s assets and calculate their degree of diversification. 3. Using dummy variable model, we compare the difference and evolution of diversification between the public and the private banks from two aspects, one is the performance of diversification, and the other is the important determinant of diversification. The results from panel data regression can be summarized as follows: 1. Consumer loans, investment, trust, foreign exchange have positive influence on banks’ profitabilities; traditional loans, diversification have negative influence on banks’ profitabilities. 2. Banks should consider the optimal economic scale when setting their diversification strategies. 3. Total assets, number of branches, concentration have positive influence on banks’ diversification. In addition, for overall public and private banks, the diversification has been improved significantly after the establishment of new banks.