A cost efficiency analysis of local commercial banks in Taiwan
Date
2015-12-20Author
Lin, Elaine Yiling
Publisher
University of Wisconsin--Whitewater
Advisor(s)
Xue, Yuhan
Winden, Matthew
Kashian, Russell
Metadata
Show full item recordAbstract
This study uses a Stochastic Frontier Analysis (SFA) model to evaluate the relative cost efficiency of each local commercial bank in Taiwan. The data was available through the website of Taiwan’s Banking Bureau and Financial Supervisory Commission (FSC). The main result of the SFA model indicates that the banks affiliated with bank holding companies (BHCs) have been increasingly efficient. However, unaffiliated banks have not been keeping pace in regards to efficiency. While this result is based on ownership structure, there are other results that find balance sheet and income statement composition also impact efficiency. For example, there is an increase in efficiency when the amount of loans increases, the price of capital increases, and there is an interaction between the prices of labor and capital.
Subject
Bank management--Taiwan--Cost effectiveness
Bank management--Taiwan--Econometric models
Banks and banking--Taiwan
Permanent Link
http://digital.library.wisc.edu/1793/77904Description
This file was last viewed in Microsoft Edge PDF viewer.