Cost saving strategies for bank operations

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Recent financial liberalization in Taiwan has caused local banks to face major structural changes. This paper examines the cost structure of 36 local banks in Taiwan using the translog cost function and attempts to identify suitable operating strategies for cost reduction and performance improvements. Results indicate scale economies for small and large-sized banks and scope economies for all banks. The establishment of a financial holding company appears to benefit largely those banks affiliated with marketleading insurance conglomerates. These results suggest active diversification should focus on deposits and lending while promoting lending jointly with deposits and investments.

Original languageEnglish
Title of host publicationProceedings of the 9th Joint Conference on Information Sciences, JCIS 2006
DOIs
Publication statusPublished - 2006
Event9th Joint Conference on Information Sciences, JCIS 2006 - Taiwan, ROC, Taiwan
Duration: 2006 Oct 82006 Oct 11

Publication series

NameProceedings of the 9th Joint Conference on Information Sciences, JCIS 2006
Volume2006

Other

Other9th Joint Conference on Information Sciences, JCIS 2006
Country/TerritoryTaiwan
CityTaiwan, ROC
Period06-10-0806-10-11

All Science Journal Classification (ASJC) codes

  • Engineering(all)

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