An Empirical Study of Bank’s Operation Efficiency In Taiwan — Using DEA Approach and Malmquist Productivity Index

• Main Author: 莊渝萍
• Other Authors: 蘇慶隆
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/27481674406087407082

碩士 === 長榮管理學院 === 經營管理研究所 === 90 === With the rapid changes of the financial market in recent years, the international financial system deregulated the banking to liberalization and internationalization while the government is as well in financial institutions. From liberalization of rate and exchange, the limit of new banks, bill finance companies and insurance companies to capital arise, financial products are innovated unceasingly, which brings traditional finance environment unprecedented change. This study attempts to explore performance of banks by means of DEA and Malmquist-Index analysis. First, we take the amount of investment, loans, interest income, and non-interest income as output variables. Capital asset, deposit, interest income, non-interest income and salary expense as input variables, than from transection and cross-section we analyze the data of lately 6 years: finance affairs of 41 local banks and 25 foreign banks operating performance in Taiwan. The study has conclusions as follows: 1. All kinds of banks performance, public-owned and foreign banks have better than others ; local banks got worst . 2. The reason why local banks are ineffective is the most part of them are under the state of deceasing of return scale, which shows that national banks need to reduce their operating scale to improve operating efficiency 3. Before the Asian crisis, the Malmquist index of public-owned banks turned down because of backward of production technology. But after the crisis all of the production still stayed in decay of the same reason, but the range of regression is worse than the former period. 4. According to the observation of local banks, between 1995~1997 their production presented in recession. But local banks were better off the public-owned banks in production technology, which showed that local banks made efforts for improving their predatory technique. During 1998~2000 their average productivities were abiding except between 1998~1999, the production is reclining. That is to see, the local bank owners coped with the crisis well in the right way. 5. To make a comprehensive survey of changes of the foreign banks in 1995~1997, their productivity were getting growing and the same in 1998-2000. The foreign banks coped with the crisis well.