| Summary: | 碩士 === 國立高雄大學 === 國際高階經營管理碩士在職專班(IEMBA) === 102 === Bank is an important financial intermediate institution nowadays, its operation performances close relates to the overall growth of economy. However, there is always an ex ante for a risk that loan becomes to be non-performing, which means loan might become an undesirable output so as to decrease the operation performance of banks (Chang, 1999; Li et al., 2009). Thus, non-performing loan influence heavily on economy’s financial soundness (Li et al., 2009), and individual banks must control its non-performing loan to maintain its performance (McNulty et al., 2001).
Taking the non-performing loan as undesirable output, the purpose of this paper is to investigate its contribution to the performance of banks applying data envelopment analysis (DEA). In order to understand the structural difference of Taiwanese financial industry, we apply the nonparametric test and cluster the samples into four groups: financial holding banks vs. non-financial holding banks, old banks vs. new banks, state-owned banks vs. non-state-owned banks, and foreign domestic banks vs. non-foreign domestic banks.
The empirical results suggest that the average performance of non-financial and financial holding banks reveal to be insignificant different; yet the old banks’ average performance is significant higher than which of new banks. On average, the performance of state-owned banks is higher than the performance of non-state-owned banks. Finally, although foreign domestic banks have higher average performance than non-foreign
domestic banks, it reveals to be insignificant.
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