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Author: 黎詩豪
Ricolay Anderson Christian
Thesis Title: 銀行盈利能力決定因素的比較研究
A Comparative Study of the Determinants of Bank Profitability
Advisor: 謝劍平
Joseph C.P. Shieh
Committee: 劉代洋
Day-Yang Liu
陳俊男
Chun-Nan Chen
Degree: 碩士
Master
Department: 管理學院 - 財務金融研究所
Graduate Institute of Finance
Thesis Publication Year: 2021
Graduation Academic Year: 109
Language: 英文
Pages: 37
Keywords (in Chinese): banking sectorbank profitabilityTaiwanAsia Pacificvariables
Keywords (in other languages): banking sector, bank profitability, Taiwan, Asia Pacific, variables
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Banking sector is becoming more important over the years as it has a vital role in funding both government and private sectors. In Asia Pacific, banking sectors can be observed from two point of views. On one perspective, banking sectors appear to be strong and growing. On the other hand, closer observation reveals that Asia Pacific commercial banks are having the challenges as mature markets, including slowing growth, thinning margins, and higher capital requirements. In term of macroeconomic situations, banks are facing the gradual adoption of open banking standards in which making more competition and banks will continuously struggle in making more returns.
Based on these issues, the purposes of this research is to explore and analyze variables which influence the profitability of Taiwan commercial banks during the period of 2015 to 2019. The dependent variables or the determinants of bank profitability used in this research are bank size, credit risk, the efficiency of management, equity to asset ratio, and market capitalization. Meanwhile, the independent variables or the proxies of bank profitability are return of equity, return of asset, and net interest margin. The method used in this study is panel data regression and significance test.
The findings of this study have shown that bank size and market capitalization do not have any influence on any proxies of bank profitability. Meanwhile, credit risk, efficiency of management, and inflation are having a significant influence on ROE and ROA, but not to NIM. Surprisingly, both credit risk and efficiency of management are having a positive correlation to ROE and ROA. In term of equity to asset ratio, it is only have a significant influence on ROE.

ABSTRACT i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF FIGURES v LIST OF TABLES vi CHAPTER I INTRODUCTION 1 1.1 Research Background 1 1.2 Problem Statement 4 1.3 Research Purposes 4 CHAPTER II LITERATURE REVIEW 5 2.1 Proxies of Bank Profitability 5 2.1.1 Return on Equity (ROE) 5 2.1.2 Return on Asset (ROA) 5 2.1.3 Net Interest Margin (NIM) 5 2.2 Determinants of Bank Profitability 5 2.2.1 Bank Size 5 2.2.2 Credit Risk 6 2.2.3 Management Efficiency 6 2.2.4 Equity to Asset Ratio (EAR) 7 2.2.5 Inflation 7 2.2.6 Market Capitalization 7 CHAPTER III METHODOLOGY 9 3.1 Research Description 9 3.2 Population and Sample 9 3.3 Data Collection Method 10 3.4 Variables 10 3.5 Data Analysis 12 3.5.1 Descriptive Statistics 12 3.5.2 Panel Data Regression 12 3.5.3 Selection Method of Panel Data Regression 13 3.5.4 Significance Test 13 CHAPTER IV DATA ANALYSIS 14 4.1 Descriptive Statistics 14 4.2 Panel Data Regression 15 4.2.1 ROA 16 4.2.2 ROE 18 4.2.3 NIM 20 CHAPTER V CONCLUSION 22 5.1 Conclusion 22 5.2 Research Limitation 23 5.3 Future Research Description 24 BIBLIOGRAPHY 25

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