<?xml version="1.0" encoding="UTF-8"?> <article key="pdf/10001448" mdate="2015-05-04 00:00:00"> <author>Ying-Hsiu Chen and Pao-Peng Hsu</author> <title>Impacts of Financial Development and Operating Scale on Bank Efficiencies in Taiwan</title> <pages>1643 - 1646</pages> <year>2015</year> <volume>9</volume> <number>5</number> <journal>International Journal of Economics and Management Engineering</journal> <ee>https://publications.waset.org/pdf/10001448</ee> <url>https://publications.waset.org/vol/101</url> <publisher>World Academy of Science, Engineering and Technology</publisher> <abstract>This paper adopts a twostage data envelopment analysis to explore the impacts of financial development and bank operating scale on bank efficiencies. The sample comprises unbalanced panel data of 32 Taiwanese listed domestic commercial banks over the period 1998 to 2013. Empirical results show that pure technical efficiency is positively related to financial development, whereas the effect of financial development on scale efficiency is insignificant. Enlargement of bank operating scale improves bank efficiencies, but the efficiency gains are decreased gradually when the scale increases. Increases in capital adequacy ratio and market power of loans lead into a growth of bank efficiencies.</abstract> <index>Open Science Index 101, 2015</index> </article>