Comparing Banking’s Efficiency between Taiwan and China

• Main Authors: Hung-Ping Wang, 王宏平
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/78766175752180051247

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 100 === With more and more cross-strait financial system interchange, an increasing number of banks are setting foot across the strait, seeking to expand into one another’s financial markets. This study will probe into and compare the operating efficiency of the banking industries in Taiwan and China. During the 3-year period from 2008 to 2010, 34 banks in Taiwan and 40 in China were selected as samples, and tested with the BCC and CCR models of DEA to study their respective efficiency. Then SYSTEM-DEA model was adopted to assess the envelop curves of these two clusters, which were later used as the basis to compare and contrast the operating efficiencies of their banking systems. The test results from SYSTEM show that when BCC and CCR are used as the basis of comparison, China demonstrates better efficiency in both tests. Yet when comparing using SYSTEM, banks in Taiwan excel. However, from the data gathered in those three consecutive years, we can see that China’s banking industry continues to boom. If our banks don’t take action to induce further growth, they are running the risk of being exceeded. In order to preserve their competitiveness in the presence of strong competition from China’s banking industry, it is recommended that banks in Taiwan focus on reinforcing their ability to conduct R&D.