Data envelopment analysis for performance evaluation of the banking industry : an empirical study of 34 commercial and medium business banks in Taiwan | |
| Author | Chang, Wan-da |
| Call Number | AIT RSPR no. SM-99-76 |
| Subject(s) | Data envelopment analysis--Taiwan Banks and banking--Taiwan |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | The art of management can be summarized by the two words 'Decision' and 'Control'. Leadership, pastoral care, planning --all these and the other managerial attributes-- can all be subsumed by these two overriding demands. For both, information is vital, and a major part of that information relates to judgements of performance of people and processes. Very rarely are these judgements easy for they are concerned with the relationships between many, often conflicting, factors. Few decisions can be made in isolation, since any part of the organization necessarily interact with many other part. In other words the organization is an interconnecting system that requires integrated checks and controls. It is a complex system that needs sophisticated tools to manage it, at both the strategic and day-to-day levels. In turn, these tools involve the collection and analysis of data to provide relevant and concise information to aid the decision makers. Managing complex operations is itself a complex operation that relies on the provision of information for its decision and control processes. In this study, we try to describe and demonstrate the technique of DEA and, just as importantly, to show how an organization should develop its use within the decision-making framework. The DEA characterizes the ability to converge the multiple inputs and outputs into a single efficient value to measure the operating efficiency of the 34 banks and comparing one with the other. Results of the study show that 15 out of 34 banks are classified to be relatively efficient while 1 out of 7 state-owned banks is fall into this category. We also categorized the 34 banks into two groups (state-owned and private-owned banks), and rank then in terms of the efficient values. In the 19 inefficient banks, the DEA approach suggests improvement of the efficient value through the utilizing the input resources and enlarging the output items. It is indicated in outcomes that the operating efficiencies between the state-owned and private owned banks really make significant difference. While privatization reorganization and merger may be some key factors to upgrade their efficiency, therefore we should encourage each individual bank in Taiwan to orient in developing the market with more efficiency and competitiveness, and the inefficiency banks should commit to update their operating efficiencies. |
| Year | 1999 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Swierczek, F.W.;Truong, Quang |
| Scholarship Donor(s) | Taiwan Provincial Government; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999 |