The Trend of Concentration Ratio to SMEs by Domestic Banks in Taiwan

• Main Authors: Huang, Yu-Ting, 黃鈺婷
• Other Authors: Hu, Jin-Li
• Format: Others
• Language: en_US
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/18016165614927730525

碩士 === 國立交通大學 === 企業管理碩士學程 === 103 === Small and medium enterprises (SMEs) are the majority type of enterprises in Taiwan. They not only are dynamic and diverse, but also have large influence and contribution for a country’s economics, politics, and society. According to 2013 statistics from Taiwan Ministry of Economic Affairs, the number of SMEs is 1,331,182, accounting for 97.64%. Employment in SMEs is 8.588 million, accounting for 78.30% of Taiwan’s total employment. Fund is not only input factors of production, but also is necessary for enterprises turnover. However, the operation scales are limited because of the relatively small amount of capital for SMEs, and global competitions are increasing. Therefore, how to improve the financing of both lenders (banks) and borrowers (SMEs) to help business operations and development is an important issue. The data source is Financial Statistics Abstract from 2003 to 2013. This research selects top ten SMEs lending banks to do the trend analysis of concentration of bank lending to SMEs, in order to observe the relationship between trend of concentration and the big issue occurred in the past decade. Concentration ratios of domestic bank loan to SMEs dropped at first &; second financial reforms and increased at the 2008 financial crisis. Trends of Domestic Banks Number in Taiwan, Non-Performing Loans Ratio on Banks, and International Petroleum Price have correlations higher than 0.7 with the concentration ratio of loan. The multiple regression analysis shows that the total asset and total deposit will influence the total loan balance to SMEs. Moreover, privatized government banks and the bank under financial holdings companies have more loan balance than private and independent banks.