A Study on Lending Efficiency of Financial Institution─Applied by The Data Envelopment Analysis methodology

• Main Authors: Guan-Chian Wang, 王冠倩
• Other Authors: Yijen Wang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/99758068214409022327

碩士 === 國立高雄第一科技大學 === 金融營運所 === 92 === This paper focuses on the largest capital assets of old bank-Taiwan Bank and new bank-Tai Shin Bank in Taiwan. We compare their lending firms’ credit quality separately with efficiency scores. Our empirical evidences are summarized as follow: We find that the lending policy of Tai Shin Bank was better then Taiwan Bank. Tai Shin Bank’s lending firms were produced with both more technical and scale efficiency. But no matter Taiwan Bank or Tai Shin Bank, their lending efficiency has to be improved. We take DEA scores as the dependent variable, and the financial ratios as the independent variable to test the explanatory power. In the part of Taiwan Bank, the average R-squared is 53%. And constant terms are significantly at 1% level, says the DEA scores still influenced by other factors. For Tai Shin Bank, the average R-squared is 59%. We also use DEA scores to classify the firms into two groups. Firms subscribed as good (bad) firms when their scores is higher lower) than average level. For Taiwan Bank, the average discriminant ratio of good (bad) firms is 71%(88%). For Tai Shin Bank, the average discriminant ratio of good (bad) firms is 73%(87%). We find no significant differences between two banks.