Since the liberalization of banking sector in 1990, the financial industry in Taiwan has become more competitive. In addition, with the globalization of international economy, Taiwan joined the WTO in 2002. After joining the WTO, to empower Taiwan’s financial industry and to handle financial competitive environment, the government has passed the Financial Holding Company Act in 2002.The Financial Holding Company Act led to the establishment of several financial holding companies (FHC) which were expected to have major impacts on the future of the Taiwan’s banking industry. This paper aims to study the performance efficiency of banks under Financial Holding Companies in Taiwan. This research paper conducts the Data Envelopment Analysis (DEA) to measure performance efficiency among 14 bank subsidiaries of FHCs. The data observed in the study are from years 2011 and 2012 respectively. The results showed that two banks were operating at its full efficiency during the observation period.
