The Determinants of Productivity for Banks in Taiwan

• Main Authors: Nan-Chang Kung, 龔楠彰
• Other Authors: Chung-Jen Fu
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/31096428498990769435

碩士 === 國立雲林科技大學 === 企業管理系碩士班 === 90 === After finance liberalization and participation of WTO, banks now face increasing internal competition（growing branches of financial institutes）and external competition（establishment of foreign financial institutes in Taiwan）; to maintaining sustainable development, therefore, banks should embark on measuring bank performance with bank productivity growth as the most important performance index, beside cost control. The purpose of the study aim at analysis of the relation and effect of element input and expense of marketing and management to bank productivity growth; furthermore, the study explores the distribution rate of element input and expense of marketing and management to bank productivity growth and overall element productivity growth, including technological change. The key factors of affecting bank productivity are identified as reference for banks to improve operational and avoid poor performance. The financial data of banks of stock market from 1993 to 2000 is analyzed. Employee number, labor expense, equity, asset, marketing expense, and management expense are selected as input variables and operation income as output variable to undergo empirical analysis. Analyzing the productivity of two departments （marketing-management and direct departments）and three departments （marketing, management, and direct department）, and the output sources, the results indicate that the input elements of labor and capital lead to the enhancement of bank performance and competence; the output sources also indicate the importance of capital and efficient labor to the future development of banks. When marketing expense have indirect effect on direct departments, growth rate of marketing expense to organizational business performance is greater along with the margin distribution to direct departments; there is to certain degree improved room to banks’ managerial operation when the technological level of management departments is lower than that of production department. From the analysis of two-department analysis, marketing-management expense appears indirectly effective to the productivity improvement of direct departments, but the increasing of marketing-management expense is negative to productivity distribution. When the three-department productivity is analyzed, the increasing of marketing-management expense is also negative to productivity distribution with the possibility that the technological level of management departments is lower than that of direct departments. Finally, the distribution of marketing-management expense to the productivity growth rate of banks is lower than that of labor but higher than that of capital; therefore, marketing-management is also one of the elements of productivity. Key word: Banking Industry , Operating Performance, Productivity, Technological Change