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Market share and performance in Taiwanese banks: min/max SBM DEA

Author

Listed:
  • Ying Li

    (Sichuan University)

  • Yung-ho Chiu

    (Soochow University)

  • Tai-Yu Lin

    (Soochow University)

  • Yun Yuan Huang

    (Soochow University)

Abstract

This research used a min/max slacks-based measure data envelopment analysis (SBM DEA) to explore the operational efficiency of 37 banks in Taiwan from 2012 to 2016, with the main research goals being to analyze bank efficiency, compare the differences in the average efficiency values of two models, and identify the need for improvements in the inputs and outputs, from which it was found: (1) the average efficiency of the SBM-max model for each year was higher than the SBM-min model. (2) The best input performance was “deposits”, and the worst input was “the number of employees.” The best output performance was “loans”, and the worse output was “investments”. (3) The average efficiency of the finance holding company subsidiary banks was higher than the non-finance holding banks, the average efficiency of the large-scale banks was higher than the small-scale banks, and the average efficiency of banks with high deposit and loan market share was higher than banks with low deposits and loan market share.

Suggested Citation

  • Ying Li & Yung-ho Chiu & Tai-Yu Lin & Yun Yuan Huang, 2019. "Market share and performance in Taiwanese banks: min/max SBM DEA," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(2), pages 233-252, July.
    • Handle: RePEc:spr:topjnl:v:27:y:2019:i:2:d:10.1007_s11750-019-00504-6
    DOI: 10.1007/s11750-019-00504-6
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    3. Xiaohong Liu & Feng Yang & Jie Wu, 2020. "DEA considering technological heterogeneity and intermediate output target setting: the performance analysis of Chinese commercial banks," Annals of Operations Research, Springer, vol. 291(1), pages 605-626, August.
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