中國文化大學財務金融學系 碩士論文

Master program, Department of Banking and Finance College of Business Chinese Culture University Master Thesis

泰國商業銀行績效之評量 ─ 資料包絡 分析法之應用

Rating of commercial efficiency in : DEA Approach

指導教授 : 施光訓 王譯賢 Advisor: Kuang-Hsun Shih, Ph.D. Yi-Hsien Wang, Ph.D.

研 究 生 : 王天美 Graduate Student: Pattra Tienmongkol

中華民國 102 年 1 月 January, 2013 Rating of commercial banks efficiency in Thailand: DEA Approach

Student：Pattra Tienmongkol Advisor：Prof. Kuang-Hsun, Shih Prof. Yi-Hsien Wang

Chinese Culture Universit y

ABSTRACT

This study aims to examine the relative efficiency of 19 Thai commercial banks during 2006 to 2010 by utilizing Data Envelopment Analysis (DEA) via operation approach and intermediation approach. The analysis conducted with the 19 commercial banks in Thailand from 2006 until 2010. The data source of this study is Bureau Van DIJK‘s Scope database. The banks‘ unconsolidated statements are utilized if available. Regarding the Database, the evaluation covers 17 local Thai commercial and retail and 2 foreign banks with a full branch (one location) in . The main findings in term of size, large banks are superior over medium and small banks via operation approach probably due to their economies of scales, while small banks are the most efficient ones under intermediation approach since they possibly to have a comparative advantage in providing lending relationship to small borrowers and offer less criteria for loan approval. In term of ownership status, foreign-owned banks perform the best role as financial intermediaries via intermediation approach seemingly owning to their reputation among financial institutions and their higher loan interest rate. State owned banks are inferior to private domestic and foreign banks since they appear to have lower net interest rate but higher NPL and overhead cost.

Keywords: Technical Efficiency, Thai Commercial Banks, Data Envelopment Analysis, Operation Approach & Intermediation Approach.

iii Acknowledgement

First of all, I would like to sincerely thank my thesis advisor, professor Kuang-Hsun

Shih, professor Yi-Hsien Wang and professor Fu-Ju Yang, for their help guidance and valuable comments throughout every steps of my thesis completion. Even though they have many advisees under their responsibilities, their immediate responses and suggestions always exist. I could not finish this dissertation without their contribution. In addition, I would like to thank you all of my friends in Taiwan and in Thailand for all their useful suggestions, helps and encouragements during this hard time. Moreover, I would like to thank Chinese Culture University for the full scholarship and the outstanding MBA program requiring this research study that encourages me to finish this thesis.

Finally, thank to my dear family for their unconditional love, understanding and continuously support my study.

Pattra Tienmongkol

1 January 2013

iv CONTENTS

ABSTRACT．．．．．．．．．．．．．．．．．．．．．．．．．．．．． iii

ACKNOWLEDGEMENT．．．．．．．．．．．．．．．．．．．．．．． iv

LIST OF TABLES．．．．．．．．．．．．．．．．．．．．．．．．．． vii

LIST OF FIGURES．．．．．．．．．．．．．．．．．．．．．．．．． viii

CHAPTER ONE INTRODUCTION．．．．．．．．．．．．．．．．．．． 1

1.1 Research Background and Motivation．．．．．．．．．．．． 1

1.2 Research Objectives．．．．．．．．．．．．．．．．．．． 3

1.3 Research Project and Scope of Study．．．．