Risk-adjusted productivity change of taiwan’s banks in the financial holding companies

Abstract

After financial holding company act was implemented in 2001, taiwan’s banks have experienced structural changes. This study employs the risk-adjusted profit productivity indicator to investigate whether the banks in the financial holding companies (fhcs) could operate with higher productivity growth than those without establishing or joining fhcs. Equity capital which is regarded as a risk factor in this study. The data of taiwan’s banks over the period 2010-2016 were taken for the above comparison.