Cost Saving Strategies for Bank Operations

DOI

10.2991/jcis.2006.56How to use a DOI?

Keywords

cost economies, Translog cost function

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 market-leading insurance conglomerates. These results suggest active diversification should focus on deposits and lending while promoting lending jointly with deposits and investments.

Copyright

© 2006, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ann Shawing Yang
PY  - 2006/10
DA  - 2006/10
TI  - Cost Saving Strategies for Bank Operations
BT  - Proceedings of the 9th Joint International Conference on Information Sciences (JCIS-06)
PB  - Atlantis Press
SP  - 231
EP  - 235
SN  - 1951-6851
UR  - https://doi.org/10.2991/jcis.2006.56
DO  - 10.2991/jcis.2006.56
ID  - Yang2006/10
ER  -