An Empirical Study of the Cost Efficiency of Domestic Banking in Taiwan

• Main Authors: HSIEH, YEN-JU, 謝雁如
• Other Authors: LAI, JING-YI
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/24712351542200566791

碩士 === 南華大學 === 經濟學研究所 === 90 === Abstract The study, following the model constructed by Cornwell, Schmidt, and Sickles (1990), analyzes the cost efficiency of 30 banks in Taiwan from 1992 to 2000. The influential factors of bank’s efficiency are also investigated using a panel-data model under the assumption of random effect. It is concluded that: (1) On average, United World Chinese Commercial Bank has the highest cost efficiency, while the Kaohsiung Business Bank the lowest. The differences among the samples, however, are not substantial. (2) New commercial banks are the highest efficient, the government-owned banks are the next, then are the commercial banks founded before1991, while special-purposed banks are the lowest. (3) Banks with middle scale in total assets have the highest level of efficiency. (4) The total assets, the overdue loan ratio, the number of branches and the operating expense ratio have positive effects on the levels of efficiency of the banks. (5) The impact of the scale in total assets on the efficiency is significant. (6) Different types of banks have no significant effects on the efficiency.