A Study on the Relationship between Problem Loans and Cost Efficiency of the Banks: Quantile Regression Analysis

• Main Authors: Hsiao-Chih Lin, 林孝治
• Other Authors: 趙莊敏
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/5hbc49

碩士 === 國立臺北科技大學 === 商業自動化與管理研究所 === 94 === Banking, is the main structure of the Taiwan’s financial system. Because to compare with generally other industries, the banking has opposite higher finance leverage, so it plays an important role of circulate funds, develop the industry management and promote the whole economy develop in the economic society. In recent years, along with after Taiwan joined WTO, the commercial bank established in great quantities, the competition is also more and more vigorous. Each bank take concentrates on increasing an accomplishment, and then in 2000, broke out the problem of a great deal of over problem loans. And Becausethe cash card and credit card circulate excessively, in 2005, produced more unperforming debt problems. When domestic banks faces vigorous environment of such competition currently, how efficiency they are? and which factors to will bring influence to the management efficiency of the bank? this is an important subject. Therefore, in this study, we try to study the relations between bank''s problem loans and cost efficiency. The different from the former study is that, this study plans to find that, banks in different efficiency level, the factor of the influence efficiency has what difference. This study is divided into two stages, the first stage, use the "Stochastic Frontier Approach", to calculate the cost efficiency of commercial banks, and in the second stage, we use the "Quantile Regression", to measure in defferent efficiency level, how the relationships between efficiency influence factors and banks'' cost efficiency. In our result, we find that of the bank of efficiency high level, after it''s return rate increase, it will make it''s cost efficiency bring to increase, this is the main reason why they usually keep the efficiency in high level. And of lower banks of the efficiency level , because of they excessive loan too often,would cause the problem loans increase, and in the same time make the cost efficiency rise, but in the end will making the cost efficiency reduce because of that the excessived problem loans can''t recover. This is main reason why their cost efficiency low.