The Study of Capital Application of Domestic Banks in Taiwan.The View of Break-Even Point.

• Main Authors: Hsueh, Ji-Tsu, 薛繼祖
• Other Authors: Shen, Chung-Hua
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/15350366157228999545

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 96 === 　　Banks are the main financial intermediary. In 1990 Taiwan Government opened the door for new banks. According from Government’s record which shown that the assets of the domestic banks have been more than NTD 28 trillion, which is 72.59% of the total assets of all financial institutions. Therefore, bank is very important in the financial markets. In order to create the great benefit to shareholders, how to operate the capital efficiently are the most important things for the proprietor of the bank. 　　In this study, I would stress on the importance of capital operation to the bank. During 2002 to 2007, 35 domestic banks studied the financial information through the break-even point to explore the use of capital in domestic banks on the subject. In this study, I use descriptive statistics analysis, Pearson's Product-Moment correlation coefficient analysis, ordinal least squares regression analysis, ANOVA, to discuss the influence and inflection between capital operations and performance. 　　This study concluded results as follow： 1.The loan loss is the major problem which impacts the operation performance of the bank. Therefore, the banks should pay more attention to control credit risk which in order to create the great profits to bank. 2.Other than the loan loss spreads is the secondary reason which impact the performance of the banks. In recent years, due to the narrow spreads of the circumstance, the banks need to use capital more efficiently, which used to against narrow spreads situation. Therefore banks need to raise equity capital ratio in order to upgrading the performance. The service fee is a type of risk-free income; therefore, domestic banks should use all kinds of financial products and services, enhance the proportion of fee income. 3.In the use of capital, the way of the investment will depend on the length of capital during the different situation. Most interest-bearing liabilities apply to interest-earning assets, and the shareholders’ equity is more used the equity method investment. 4.If the bank only focus on expansion of business scale or the inter-bank mergers will not help to improve operating performance. But that may improve the performance when they establishment of financial holding companies; therefore, the reduction of overdue loan ratios of the banking business will improve the performance of the bank.