The Operating Efficiency Analysis of Taiwan''''s Banks Listed on Taiwan Stock Exchange and Over the Counter Markets

• Main Author: 蔡素琴
• Other Authors: Shengyeh Wu
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/87955873836041841682

碩士 === 義守大學 === 管理科學研究所 === 89 === The global recession made many businesses face the financial crisis. In the same time the overdue loans has increased in bank industry that made the competition financial environment more changeful. Thus, the topic of how to assess the performance of banks is more and more important. The purpose of this study is to apply a DEA for measuring performance to banking industry data. By using CCR model of DEA to calculate the aggregate technical efficiency. From slack variable the inefficiency banks can decreased the inputs and increased the outputs. In order to know the inefficiency sources using BCC model to calculate the pure technical efficiency and scale efficiency. By return to scale analysis, each bank is opposed to enlarge, contain or reduce the scale of production to increase the operating efficiency. The relationship should be discussed in censored regression among the overdue loans, operation income per employee, total capital, number of branches and aggregate technical efficiency. Previous empirical studies has focused on public-owned and private-owned banks, native and foreign banks. There are many commercial banks to be established in the financial liberalization. The data use 35 banks on Taiwan Stock Exchange and Over the Counter Markets from 1997 to 2000. The DEA method has been used to evaluate the operating efficiency of banking. In this study, intermediation approach is used to decide the inputs and outputs. The two outputs are total current assets and interest income. Three outputs are total fixed assets, operating expenses and interest expenses. The result of this study are as follows: 1. In the period of study ICBC, Taishin Bank, Dah An Bank, Cathay Bank, Chaio Tung Bank are the best; Kaohsiung MB Bank, Kaohsiung Bank, Taitung MB Bank, Pan Asia Bank, Baodao Bank are the worst. 2. The eight banks’ operating efficiency including Chinese Bank, UWCCB, ICBC and so on are getting rise. The seventeen banks getting down in operating efficiency such as First Bank, Dah An Bank, Ta Chong Bank etc. 3. Total banks’ aggregate technical efficiency is getting down. Most of this inefficiency is the result of pure technical, i.e., wasting resources. 4. Censored regression analysis indicates that aggregate technical efficiency measure is negatively related to overdue loans and positively related to total assets. Thus, operation income per employee and number of branches are nonrelated to aggregate technical efficiency.