Study on the Operation Performance of Government and Private Banks in Taiwan

• Main Authors: Hsieh,Wen-Shin, 謝文馨
• Other Authors: Wang, Sue-Fung
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/52704822056097237241

碩士 === 國立交通大學 === 管理學院碩士在職專班財務金融組 === 97 === This research uses a multivariate analysis of variance to analyze a bank’s operational performances and profitability with five principal financial indicators. To achieve this task, fourteen banks (as study cases) are first sampled from the top seventeen banks in Taiwan to judge their past eleven-year operational performances. The sample data does not include the China Development Industrial Bank, the Shanghai Commercial & Savings Bank, LTD, and the Citibank in Taiwan. Details of them include two Government Banks, six Privatization of Government Banks, and six Private Banks, where a Government Banks means its representative should be assigned by the Ministry of Finance (or the share ratio owned by government is larger than 20%). The study period is eleven years (starting from 1998 to 2008). Based on the season report of Condition and Performance of Domestic Banks in Taiwan, from its nineteen main financial and performance ratios, we use the principle component analysis to extract five common factors. Through weighting, normalization, and sorting, these factors are further combined to form a novel performance index for operational performance analysis. Four important results were found from this analysis, that is: 1. The short-term operational performance of Privatization of Government Banks is not certainly larger than Government Banks. 2. The short-term operational performance of Private Banks is often larger than Government Banks or Privatization of Government Banks. 3. The long-term operational performance of Privatization of Government Banks is often larger than Government Banks. 4. The long-term operational performance of Private Banks is often larger than Government Banks or Privatization of Government Banks . To sum up, a good and well-developing vision will provide superior performances and risk controls for a bank’s operation, especially under the conditions of financial storm.