Operation Efficiency Discussion of Foreign Banks in Taiwan

• Main Authors: I-Chih Lee, 李宜芝
• Other Authors: 作者未提供
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/54293585857795743683

碩士 === 銘傳大學 === 管理研究所碩士在職專班 === 98 === Taiwan banking industry has attracted more attention than they had before Taiwan joined WTO, with related regulations improved. Due to few literature referring the topic, this study especially focuses on the buy-side, foreign banks, to analyze their efficiency and performance after the M&A. The major samples of this study are Standard Chartered、Citi、HSBC Taiwan、RBS and DBS, using 36 quarterly data with the period from 2005 to 2008 respectively. The major purpose of the study is to identify the performance of those banks before and after their mergence, and to offer suggestions for the inefficient ones. The methodology of DEA is used to build efficient evaluation model. With its CCR model, the seasonal total technical efficiency of each bank generated respectively. After that, the inefficiency, such as reducing too much extra-input or increasing less production, would be concluded by the analysis of variables variance method. Moreover, BBC model is used to evaluate the pure technical efficiency and scale efficiency to identify whether there is relationship between these two reference data. Further more, by the scale remuneration analysis, it would indicate that the bank should expand, maintain or reduce the business scale, to increase the operation efficiency and effectiveness. According to the research, most of the banks do not show much promotion in technical efficiency after their mergence. The main reasons are that the merged ones are inefficient, and the mergers tend to extend their business rapidly to expand their market ratio, to increase treasury size and numbers of customers. The cost would be reduced, however, the new administration may still have difficulty in utilizing inner resources and settlement of duplicated business.