A Study on the Operating Efficiency of the Banks in Taiwan

• Main Authors: Jiunn-Liang Chen, 陳俊良
• Other Authors: Cheng-Yuan Chen
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/67709913112950982674

碩士 === 國立高雄第一科技大學 === 企業管理研究所 === 94 === Abstract This study uses Data Envelopment Analysis (DEA) to evaluate the operating efficiency of 50 domestic banks. The study period is from 1999 to 2004. The input variables include automation service equipments、interest expense and salary expense, while the output variables consist of loans and interest income. The empirical findings are as follow: 1. The inefficiency of the banking industry is caused by pure technical inefficiency. Generally speaking, the return on scale of private banks is increasing, whereas that of state-owned banks is decreasing. 2. Empirical results show that, operating efficiency of banks inside the financial holding company is increasing obviously. Include Cathay United Bank、E.Sun Bank、Fubon Bank and Chinatrust Bank, whereas that Hua Nan Bank、Taipei Bank、Sinopac Bank and Jih Sun Bank is decreasing. 3. The average overall efficiency of the state-owned banks is higher than the private banks. Empirical results show that, the inefficiency of the state-owned banks is caused by scale inefficiency, while the inefficiency of the private banks is caused by pure technical inefficiency.