Determinants of Banking Efficiency and Survival in Taiwan with Consideration of the Real Management Cost

文化大學機構典藏 CCUR > 商學院 > 財務金融學系 > 期刊論文 > Item 987654321/48825

Please use this identifier to cite or link to this item: https://irlib.pccu.edu.tw/handle/987654321/48825

Title:	Determinants of Banking Efficiency and Survival in Taiwan with Consideration of the Real Management Cost
Authors:	Liang, LW (Liang, Lien-Wen) Cheng, CP (Cheng, Cheng-Ping) Lin, YP (Lin, Yipin)
Contributors:	財金系
Keywords:	bank efficiency bank survival economic provisions for loan loss
Date:	2020-04-08
Issue Date:	2020-11-12 10:03:13 (UTC+8)
Abstract:	By using a real management cost method to re-calculate economic costs at Taiwanese banks, this article sheds light on the relationship between CAMELS (capital, asset quality, management, earnings, liquidity, and sensitivity) theory and bank survival by analyzing the impact of key CAMELS indices on cost efficiency, which in turn influences bank survival. We estimate cost efficiency at banks using stochastic frontier analysis (SFA) and economic provisions for loan loss based on Shen and Chen (2010). The seven key determinants are the capital adequacy ratio, the non-performing loan ratio, the deposit growth rate, the return on assets, the leverage ratio, the scale of assets, and whether a bank is owned by a financial holding company. These CAMELS indices significantly affect cost efficiency at surviving banks and failed banks and have different effects. The measure of provisions for loan losses significantly affects cost efficiency at banks and makes the outcomes closer to reality. We also outline some important policy implications to avoid banking crises.
Relation:	EMERGING MARKETS FINANCE AND TRADE 卷冊: 56 期: 5 頁數: 1003-1023 特刊: SI
Appears in Collections:	[財務金融學系 ] 期刊論文

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