Establishing the Performance Evaluation Criterion of Financial Holding Company

• Main Authors: Yu-Chen Liu, 劉玉珍
• Other Authors: Jen-Hui Hsu
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/w2fng2

碩士 === 世新大學 === 經濟學系 === 90 === With the trend of deregulation and internationalization, the advanced countries have gradually loosened the control of financial institutions that make them to run business more broadly, flexibly and competitively. The increasing competitive capacities through deregulation, merger and acquisition activities can expand the market share on the global financial market. It is a common pattern of the international banks to run conglomerate mergers. In Taiwan, since a great number of banks and highly competitive, all participants only have a small market share. In addition, since most financial institutions are lack of international competitiveness, their profits have gradually declined in recent years. The purpose of “the Law of Bank Holding Company”is helping the local banks to enter into integration and transformation to improve their competition。 The goal of this dissertation is to establish a system of performance measures of financial holding company. The domestic financial holding company how to confront the competition from international banks after the country entering WTO, is an interesting subject to do research. Considering the domestic financial holding industry''s strategic goals, and basing on Kaplan and Norton''s concept of the Balanced Scorecard Model, the dissertation suggests a strategic performance measurement system which emphasizing risk management perspective in addition. Expectedly it could be applied to measure the performance of the domestic financial holding company. This research comes out the following conclusions: 1. The financial holding industry''s current strategies fall into items: enhancing enforcing income management, developing comprehensive universal bank businesses, providing services of best quality, developing new financial products, improving operating efficiency comprehensively, enhancing human resources management, and strengthening risk management. 2. This research designs performance measurement indicators for each perspective of the adjusted Balanced Scorecard Model. The indicators of financial perspective are asset allocation analysis, capital utilization efficiency, and profitability. The indicators of customer perspective are goal achievement ratio, the degree of customer satisfaction, market share. The indicators of internal business processes perspective are the efficiency of transaction processing, the number of new services launched. The indicators of learning and growth perspective are training in a specialty of employee and stability of employee. The indicators of risk management are risk exposure, internal auditor and internal control, the capital adequacy ratio, overdue loan.