The Efficiency Analysis of the Banks-The Case Study

[[abstract]]The banking was playing an important role for Taiwan?s socio-economic develoment in the past. Nowadays accompany with the internationalization and liberalization of the country policy, it?s the trend driving the public bank shift in private bank. This study analyzes the efficiency of the case study?s bank by using the Data Envelopment Analysis (DEA). Based on the data of inputs and outputs from 1997~2003. The inputs data consist of deposit,employee; and outputs data consist of loan and charge. The thesis evaluate the overall efficiency,technical efficiency, and scale efficiency to find out the inefficient branches in order to improve the business efficiency. Finally,used sensitivity analysis to test eash input and output variables. Empirical results show: (1) The ratio of the operating efficiency are lower on this case bank. (2) The inefficient of the case bank focus on scale inefficient. (3) The efficiency are not significantly improved after the privatization of the case bank. (4)After the privatization , the first class branches have been most operating efficient; then the second class branches,and the worst are the third class branches. (5) The sensitivity analysis shows the DMU haven?t outlier. And sensitivity ranks by deposit,charge,load,then employee