Advanced Search
MyIDEAS: Login

Explaining Bank Efficiency Differences Between China and Taiwan by Meta-Frontier Cost Function

Contents:

Author Info

  • Yi-Cheng Liu

    ()
    (International Business Department, Tamkang University, 151 Yingzhuan Rd., Tamsui Dist., New Taipei City 25137, Taiwan (R.O.C.), Taiwan)

  • Wen Yang

    ()
    (Department of Statistics, Tamkang University, 151 Yingzhuan Rd., Tamsui Dist., New Taipei City 25137, Taiwan (R.O.C.), Taiwan)

  • Shin-Ying Mai

    ()
    (Financial Analyst, C.I.T. Group, New Jersey, USA)

  • Chao-Cheng Mai

    ()
    (Department of Industrial Economics, Tamkang University, Taiwan; Research Center for Humanities and Social Sciences, Academia Sinica, 128 Sec. 2, Academia Rd., Nankang, Taipei 11529, Taiwan (R.O.C.), Taiwan)

Registered author(s):

    Abstract

    The purpose of this paper is to employ the Meta-Frontier Cost Function to compare the efficiencies of banks in China and Taiwan over the period 2003–2009. Different from previous literature using loans and securities as the output variables in evaluating banking efficiency, we propose two new variables: interest income on loans and nonperforming loans, to identify whether the banks are both cost and profit efficient and to control the quality of loans. Evidence is found that the average cost efficiency of China's banks leads the Taiwanese banks with a significant gap. Some policy implications are provided accordingly.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S0219091512500245
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S0219091512500245
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Review of Pacific Basin Financial Markets and Policies.

    Volume (Year): 15 (2012)
    Issue (Month): 04 ()
    Pages: 1250024-1-1250024-25

    as in new window
    Handle: RePEc:wsi:rpbfmp:v:15:y:2012:i:04:p:1250024-1-1250024-25

    Contact details of provider:
    Web page: http://www.worldscinet.com/rpbfmp/rpbfmp.shtml

    Order Information:
    Email:

    Related research

    Keywords: Meta-frontier cost function; bank efficiency; China; Taiwan;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wsi:rpbfmp:v:15:y:2012:i:04:p:1250024-1-1250024-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.