Dynamics of Growth and Profitability for the Banking Industry in Taiwan

• Main Authors: Chih-Hao Hsiao, 蕭志豪
• Other Authors: Roung-Jen Wu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/05771083431548879764

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 94 === ABSTRACT The purpose of this thesis is to study the dynamic relationship between asset growth and profitability for the banking industry in Taiwan. Dynamic panel vector autoregressive equations are used. Data covers the period from 1992 to 2005. The following important results are found: (1)Based on the aggregate banks, the dynamic relationship between asset growth and profitability significantly exists before the establishment of bank holding company (i.e., 1992-2000). However, only asset growth can significantly and dynamically affect profitability after the establishment of bank holding company (i.e., 2001-2005). (2)Based on the classification of new banks and old banks, the dynamic relationship between asset growth and profitability significantly exists for old banks during 1992 to 2000. But it is for new banks during 1992 to 2000 that only asset growth can significantly and dynamically affect profitability. This implies that the driving force for the existence of the dynamic relationship between asset growth and profitability for the aggregate banks during 1992 to 2000 is from old banks rather than new banks. (3)Based on the classification of holding-company banks and non-holding-company banks, there not exists the dynamic relationship between asset growth and profitability for holding-company banks during 1992 to 2000. However, the dynamic relationship between asset growth and profitability exists for non-holding-company banks during 1992 to 2000. During 2001-2005, it is for holding-company banks that only asset growth can significantly and dynamically affect profitability. There not exists the dynamic relationship between asset growth and profitability for non-holding-company banks. This shows that the dynamic relationships for holding-company banks and non-holding-company banks are respectively changed. In addition, this implies that the driving force for the existence which only asset growth can significantly and dynamically affect profitability for the aggregate banks during 2001 to 2005 is from holding-company banks rather than non-holding-company banks.