Evaluating and Comparing the Operating Performance of Bank Branches - C Bank as an Example

• Main Authors: HUANG,HUI-WEN, 黃惠雯
• Other Authors: Chih, Hsiang-Lin
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/93338078561129110214

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 102 === With Taiwan government actively promoting financial mergers, the total number of Taiwan’s banks descended sharply from 53 in 2001 to 38 in 2012, but the amount of local bank branches constantly grew to 3,416 and the number of bank employees in Taiwan reached to 136,957, a record high since 2004. Therefore, when financial institutions vigorously expand their branch footholds, how to improve the performance of branches operations is more importantly to display the merit of bank channels. Financial environment in Taiwan has changed in recent year, which leads to a fact that banking management focuses not only on pursuing an increase in profit, but also on risk control. Furthermore, banking management need to cope with the Third Basel Accord that requires a much more rigorous capital adequacy ratio to increase the capital allocation efficiently. Besides, under the trend of over competition and dwindling in interest rate spread on deposits and loans of banking enterprises, the branches must operate efficiently, expand the scope and field of business and put emphasis on fee revenue so as to enhance banking management ability. The existing research has applied the data envelopment analysis, decision-making matrix, and multiple regression models to evaluate and analyze the operating efficiency value of branches scale more than 10 billions(GroupA) and less than 10 billions(GroupB) in deposits and loans which located on the Taiwan’s northern, central, and southern areas, of a case bank in Taiwan in the years of 2010 to 2012. A variety of indices, which is normally used to evaluate the performance of a bank, are also used with the method of regression analysis approach to analyze their influences to the operating efficiency value.The experimental results show that:(一)In terms of the scale of deposits and loans, large branches operate efficiency than small branches,besides, it also cases in case bank operating inefficiently due to the inefficiently of scale in some regional branches.(二)Northern branches operate efficiency and profitability inferior than branches in Central and Southern areas due to the excessive concentration and keen competition of financial institutions in north area.Besides, northern branches have the lowest of deposit and loan interest spreads and fee income earnings ratio than other areas.Therefore, it results in a higher percentage ratio that branches can not reach the efficient frontier and profitability poor.(三)Population and population density impact on the efficiency values showing no significant in positive and negative correlation in northern, central, and southern areas, in addition,although urban areas have both higher population and population density, because of the proliferation of financial institutions , such a vicious competition affect some branches the operating efficiency .On the contrary, branches have small population and low population density, if they operate well, control their costs, can be achieved operating efficiency.