The Analysis on Efficiency of Taiwanese Commercial Banks by Using Data Envelopment Analysis

• Main Authors: Te-Chin Tsai, 蔡德錦
• Other Authors: Po-Sheng Ko
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/85802093733993132785

碩士 === 國立高雄應用科技大學 === 財富與稅務管理研究所碩士在職專班 === 101 === In the process of national economic development, the banking industry plays a critical role, as its operation is closely associated with stable growth of national economy. With economic trend, change of financial environment, coming of micro-profit era and Domino Effect of international financial tsunami in 2008, operation of financial industry became difficult. Thus, in an intense competition of banking industry, it is important for managers to adjust and review the strategies at any time. Based on the Data Envelopment Analysis (DEA), this study analyzed input and output of operational indicators in 33 banks in Taiwan from 2009 to 2011. Capital, bank balance, business premium and automatic service machine are input items, while lending and discounts, interest and net profit of charges are output items for multi-dimensional envelopment analysis in order to recognize relative efficiency and change of efficiency of the banks in different years. Solution is obtained by CCR and BCC of multiple-period DEA. This study analyzed the overall efficiency and return to scale regarding operational efficiency of banking industry in order to measure overall efficiency, technical efficiency and scale efficiency of different years. By the measurement on change of efficiency from 2009 to 2011, this study attempted to recognize change of efficiency in different years. For the relatively inefficient banks, this study proposed the difference variables of the factors as the reference to improve efficiency. According to return to scale, this study suggested the expansion or reduction of the operational scale of banks to enhance efficiency. According to research findings, from 2009 to 2011, average overall efficiency, pure technical efficiency and scale efficiency of the banks in Taiwan were lower than 1. Generally speaking, banks in Taiwan should enhance operational efficiency. As to change of productivity of total production element in 2009-2011, it was more than 1 in 26 banks in Taiwan, such as Land Bank. This means that productivity of most of banks is enhanced. The other 7 banks remained the same or the productivity was lower. Thus, they should enhance production techniques or properly adjust production scale in order to enhance overall efficiency.