A Study on the Operational Performance of the Domestic Banks and the Foreign Commercial Banks in Taiwan

• Main Authors: Yi-Li Wen, 溫怡俐
• Other Authors: Cheng-Yih Hong
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/5f594w

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 93 === It has been found that there is a decreasing trend in the profitability of domestic banks since the Taiwan banking market was deregulated in 1991. However, the foreign commercial banks still maintain high profitability and low overdue loan ratios even during the Asian financial crisis. It is therefore important for domestic banks to improve their operational performance in order to remain competitive advantages in international banking market. This study is aimed at the banks within the territory of Taiwan, 44 domestic and 19 foreign commercial banks are included. The period of time of study is chosen between the third season of 2002 to the third season of 2004. Approaches as Principal Component Analysis and Multiple Regression Analysis are used to serve the purpose of the primary factors that have significant influences on the operational performance of banks that are within the territory of Taiwan. Moreover, this study also provides discussions on the differences of operational performance between domestic and foreign commercial banks and the related factors of significance. 1. Several principal factors are identified that significant influences on the bank operational performance within the territory of Taiwan except the profitability: liquidity, security, management ability, capital structure, efficiency, growth prospect and the factors of cost-benefit. 2. In the aspect of the return of asset, foreign commercial banks possess better capability of the interpretation of the liquidity, security, management ability, capital structure and efficiency factors above when comparing with the domestic banks. In the aspect of the return of equity, it is found that both domestic and foreign commercial banks share the same principal factors: capital structure, growth prospect and the factors of cost-benefit.