A Study Of Operational Efficiency Of Commercial Banks In Taiwan

In any region or country, the development of commercial banks is closely related to the economic growth. Having experienced such major events as establishing new banks, joining WTO, and financial storms in 1997 and 2008, commercial banks in Taiwan have witnessed more complex business environments than before. The key for any commercial bank which wants to maintain sustainable operability is to increase competitiveness among the peer group, which depends on enhancing operational efficiency. Therefore, this study aims to investigate issues related to the operational efficiency of commercial banks in Taiwan.This paper will firstly discuss the significance and contents of study of operational efficiency of Taiwanese commercial banks, give a general review on the efficiency study of commercial banks at home and abroad, and summarize the previous scholars' research perspectives and conclusions, as an important reference of this paper. Secondly, it will investigate the present situation of Taiwanese commercial banks and analyze the present situation and plight, as unresolved issues of the study. Next, it will determine a study method and conduct a study design based on aforesaid study findings. Firstly DEA will make an empirical study on the operational efficiency of commercial banks in Taiwan, to derive relative efficiency among studied banks, and based on which, it will give further analysis on returns to scale, slack variable and sensitivity.In order to discuss more fully on the operational efficiency of commercial banks, the paper will combine the efficiency evaluation results with Modified Delphi Method to conduct threefold questionnaire surveys among experts, so as to form the strategy evaluation criteria for enhancing the operational efficiency of commercial banks in Taiwan, as well as apply the AHP to rank the criteria by importance, to determine the priority indicators of operational efficiency enhancement of commercial banks as identified by experts. Finally, based on the study, it will propose thinking the direction and specific strategy for enhancing the operational efficiency of commercial banks in Taiwan.