Banks In Taiwan Research Articles

DEA model for partial centralization resource allocation among independent subset of DMUs

This paper proposes the concept of partial centralization in view of the problem of partition and group governance in management practice, and based on this, an optimization model of independent subset incentive resource allocation is constructed. From the perspective of the decision makers of each independent subset, the model takes into account the different attributes of resources and incorporates the homogeneous decision-making units outside the subset into the reference set to allocate resources based on the principle of efficiency first and fairness. The purpose is to improve the output of each decision-making unit in the subset and reduce the myopia effect by rationally optimizing the allocation of resources. The constructed model can directly compute resource optimization results without model retransformation. Numerical examples show that by applying this model, the efficiency value of each decision-making unit after optimizing resource allocation is greater than or equal to the original efficiency value. Finally, it is applied to analyze the optimal allocation of resources of 30 banks in Taiwan. The results show that this method can better realize the optimal allocation of bank resources and stimulate the resource allocation of non-effective decision-making units, which has important application significance.

A RACE pathway for inventing and sustaining mobile payment innovation - A case study of a leading Bank in Taiwan

This study aimed to propose a resource framework called RACE to demonstrate how a conventional financial service provider developed a defensive strategy to secure existing assets and dynamically evolved to enter new areas of competition and achieve offensive success. RACE stands for technology resources (R), strategic alliances (A), customers (C), and ecosystems (E), which represent the critical resources of a conventional bank for digital transforming in the mobile payment market. The study adopts an explorative single case study to analyze Inter-firms’ coopetition in the market and to explore how competitive advantages were developed through a critical path of RACE model. The revelatory case is a leading financial institute in Taiwan. A qualitative case analysis was conducted and the results revealed that through dynamic interplays of the proposed RACE model among the internal and external resources, a conventional enterprise can create new competition battleground and develop new types of coopetition. The innovative disruption in advancing mobile payment is not a straightforward process, the journey is full of challenges from defensive resource exploitation to offensive market acceleration. The Implications of the evolving path of the RACE model provide various avenues for further research on the dynamic capabilities, and the results are suggested for academics and practitioners in the era of digital disruption.

Hybrid MADM-based study of key risk factors in house-for-pension reverse mortgage lending in Taiwan's banking industry

The issue of financial problems among the elderly has garnered the attention of multiple generations. In 2018, Taiwan formally attained an ageing society status. In order to address the financial difficulties elderly people face, an annuity system reform was launched by the Taiwanese government. Reverse mortgage lending, which is performed on the basis of house-for-pension, is an alternate method for enhancing their standard of living and sustaining their financial stability. The elderly applicants often mortgage their properties to financial institutions in order to maintain a steady cash flow for the fulfilment of their daily needs and live their remaining years in the mortgaged properties without vacating. Prior studies on house-for-pension in the Taiwanese context primarily concentrated on institutional implementation analysis but limitedly explored the uncertainty risks banks face when implementing the house-for-pension scheme. First, a literature review on the risks associated with house-for-pension reverse mortgage financing and comprehensive interviews with banking industry professionals were conducted. Subsequently, in the Taiwanese banking sector, assessment criteria for important risk factors in house-for-pension reverse mortgage financing were devised. The decision-making trial and evaluation laboratory (DEMATEL) was utilised to assess the interdependence of the assessment criteria. Next, the DEMATEL-based analytic network process (ANP) or DANP were used to calculate the weights of evaluation criteria. By employing modified VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR), a gap analysis was undertaken on the assessment criteria and sub-criteria. The study's findings serve as a guideline for the Taiwanese banking industry in formulating, improving, or amending the risk exposure mitigation measures for reverse mortgage lending.

Crescent-Shaped Low-Temperature Distribution along the Convex Topography in the Southeastern Edge of Taiwan Bank in Summer

Abstract Various physical mechanisms of ocean upwelling usually occur near or along coastal regions worldwide. Five upwelling zones of unequal intensity are found around the Taiwan Strait, and the Taiwan Bank (TB) upwelling zone has the most prominent characteristics of low temperature. In this study, satellite images, shipboard ADCPs (acoustic Doppler current profilers), and CTDs (conductivity–temperature–depth measures) were analyzed to investigate the processes of cold water upwelling around the TB shoaling zone. In addition, the MITgcm numerical model and the flexible cubic spline technique were also employed, allowing us to better understand those processes. The model results suggested that a combination of Ekman transport and the centrifugal force, driven by the geostrophic South China Sea Warm Current (SCSWC), constitutes a physical mechanism to contribute the vigorous upwelling in the TB shoal zone. The upwelling is largely driven by Ekman transport. However, the centrifugal force may explain why the upwelling with a crescent-shaped distribution of low temperatures along the convex topography of the southeastern edge of the TB shoaling zone is more prominent than expected, as it tends toward the so-called gradient wind balance. Sudden relaxation of the friction force occurred because of the very sharp shelf break (20–60 m) and steep slope topography; a discontinuous velocity zone around the shelf break could also lead to vigorous cold water upwelling. Significance Statement Extensive data concerning the Taiwan Bank (TB) shoaling zone have been collected in the past decade in an attempt to improve understanding of the process of cold water upwelling in the area. Because the Kuroshio invades the South China Sea from the east, and the South China Sea Warm Current flows northeastward around the southeastern edge of the TB, water circulation in and around the sandbar is very complicated. Thus, we expanded our model range from small to large scale to avoid the open boundary settings of small-scale model (including the temperature and salinity fields, wind stress, and the model driving forces), which were not easy to set up. Thus, we used a large-scale, high-resolution circulation model to study a small-scale ocean region. Physical processes of this upwelling can finally be verified in the small-scale region. To compensate for the insufficient resolution of the large-scale numerical model, our strategy was to utilize the flexible cubic spline technique to resolve the curvature of the markedly meandering currents. In light of scale analysis, the results showed that in addition to the critical contribution of Ekman transport to the upwelling, the effects of centrifugal forces on upwelling in the TB shoal zone need to be considered.

Comparison of Microbial Sampling Sites and Donor-Related Factors on Corneal Graft Contamination.

Grafts used for corneal donation should be sterile to avoid transplantation failure and secondary infection. However, there are no clear and globally accepted specifications from eye banks on microbial sampling sites. The objective of this study was to analyze microbial contamination of corneal grafts collected from different sampling sites. We found that the contamination rates and strain compositions significantly differed at different sampling sites. To clarify the effect of the microbial sampling site on corneal graft contamination, microbial sampling was conducted using 30 corneal grafts at the extraocular and intraocular sides of the graft in 2020 from the National Eye Bank of Taiwan. Microbial contamination significantly differed (p < 0.05) between the different sampling sites on the graft according to McNemar's test. Although the two sampling sites showed the same specificity (33.33%), the sensitivity of sampling on the extraocular side (82.35%) was higher than that on the intraocular side (17.65%) of the graft. Donor-associated factors, including the cause of death, operating place, and cold compression, were analyzed using chi-square statistics, which revealed no significant differences in microbial contamination. Thus, our data provide evidence for the microbial sampling site of donated grafts and clear specifications for maintaining the quality of corneal grafts.

Financial Innovation, Financial Patents and Business Performance: An Empirical Study on the Banking Industry in Taiwan

There have been a lot of discussions on financial patents abroad, while the number of domestic fintech patent applications is still small. In view of the past research on financial innovation and financial patents on company performance, the results are inconsistent. Therefore, in this study, a panel data model of the impact of financial innovation and financial patents on business performance in Taiwan's banking industry from 2005 to 2020 is constructed, and the performance determinants of financial innovation and financial patents are further explored. This study also uses the data envelopment analysis (DEA) to distinguish between those who have invested in financial patents and those who have not and compares the difference between their efficiency. Finally, the sample is divided into public and private banks, and financial holding and non-financial holding banks to further examine the differences in the influencing factors of the sub-samples. The results show that non-financial holding banks continue to improve their technical efficiency to keep up with the fierce competition in the banking industry.

Façade Creation and Workplace Bullying: A Mediated Moderation Model

This study examines the buffering role of a psychological contract breach in the process leading from façade creation (i.e., suppressing one’s own values and pretending to hold organization values) to workplace bullying through leader–member exchange (LMX). This study predicts that façade creation, particularly when the level of psychological contract breach is high, produces high LMX, which reduces bullying in the workplace. In total, 302 employee–employer dyads (265 males, 37 females; average age 46.07 years) from a large bank in Taiwan were surveyed. Surveys were conducted at two time points for employees and at one time point for their employers who volunteered. The findings of this study found significant relationships between facades of conformity and workplace bullying. This study further found that LMX mediates the relationship between façade creation and workplace bullying and demonstrate that a perceived breach of psychological contract moderates this mediating pathway. Strong psychological contract breach increases the relationship between façade creation and LMX. A time-lag design of two time periods and two different sources (i.e., employers and employees) were utilized to diminish common method variables (CMV) in this study. Implications and directions for future study are discussed.

Selecting the Fintech Strategy for Supply Chain Finance: A Hybrid Decision Approach for Banks

Many banks are eager to adopt technology solutions to enhance operational efficiency in managing supply chain finance, which involves various participants and complex financial activities. Previous research either focuses on the technology aspect or the optimization of a supply chain; there is little specific guidance on how banks can form a holistic model to evaluate their Fintech strategy for supply chain finance. By using an integrated approach, this study adopted the decision- making trial and evaluation laboratory (DEMATEL) and several analytical methods to construct a hybrid decision model for banks. We concluded four plausible Fintech strategies from previous research and highlighted the advantages of the blockchain-based strategy. We used a domestic bank in Taiwan as a case study during the evaluation phase and implemented crisp and confidence-based fuzzy assessments. The result indicates that the blockchain-based leading strategy would be ideal for this bank. The hybrid decision model also unveils the complicated relationships among those evaluation factors, which sheds light on banks pursuing their innovation in financial services. The findings contribute to banks developing their Fintech-based supply chain financing business, and the supply chain participants may also benefit from securing efficient loans to expedite their operations.

Total Utility Payment Schemes and New Landscape- Strategic Implications for Mainland China and Taiwan

Consumer payment methods and factors affecting consumer choice of payment methods are analyzed in this study. Convenience, security, and incentives are major factors for consumers to select payment methods or schemes. The dichotomy of consumer payment methods or schemes is used for defining primary consumer payment methods or schemes and confined consumer payment schemes. For expanding uses and profits of the operator(s), consumer payment methods tend to and need to evolve into total utility payment schemes (TUPS), which leads to a drastically new consumer payment landscape. It also affects consumer businesses as well as consumer banking and financial services. Strategies of fast TUPS and swift expansion into Mainland-Chinese frequently would increase substantially the global consumer payment share of Mainland Chinese payment. Close cooperation between Mainland China’s UnionPay and Taiwan banks’ credit/debit cards with appropriate incentives to consumers shall be a strategy in terms of market share and profitability.

Modeling Switching Intention of Mobile Payment Service in the Moderation of Usage Inertia and IT Self-Efficacy: Implications for User Education

Built upon the push-pull mooring framework, the research model of this study examines the switching intention of mobile payment service. This research fills current knowledge gaps in the literature by examining (1) personal characteristics that have been relatively understudied for clarifying switching intention, (2) a dual role of usage inertia that serves as not only a mediator but also a moderator, and (3) the moderation of self-efficacy on mooring factors (switching cost and perceived economic value). Statistical analyses based on the field survey data across three industries (manufacturing, banking, and traditional servicing industries) in Taiwan were conducted. This study applies multiple methods to test its empirical data, including confirmatory factor analysis, moderated hierarchical regression analysis, the ULMC approach, and the technique of bootstrapping. The analytical results show (1) switching intention is directly influenced by anxiety on compatibility, usage inertia, and personal innovativeness; (2) switching intention is indirectly influenced by switching cost and perceived economic value through the mediation of usage inertia; (3) usage inertia negatively moderates the relationship between personal innovativeness and switching intention; and (4) IT self-efficacy negatively moderates the relationship between switching cost and usage inertia. Finally, this study discusses theoretical and practical implications based on the results.

THE TAIWAN BANKING SECTOR - THE IMPACT OF LIBERALIZATION AND MACRO ECONOMIC FACTORS. AN EMPIRICAL STUDY OF TAIWAN

ABSTRACT National culture is a well-researched and significantly impactful factor as nations transition from developing to emerging to fully developed status. Adam Smith set forth the idea that certain “norms” were required for capitalism to grow, and subsequent research has indicated that cultural factors are significant in both bilateral trade and the participation in stock markets. While many factors significantly influence the efficiency of emerging market banking and the internationalization of currency, perhaps none is more important than the financial liberalization of a nations' banking system. This paper investigates the process of liberalization of Taiwan's banking sector since the Asian financial crisis in 1997 and into present day. The steps undertaken by the country are reviewed and what foreign banks may offer in terms of increasing competitiveness amidst the domestic banks, is examined. The effects of liberalization are analyzed by developing a model and tested by an empirical framework using linear regression. Results indicate significant direct effects of liberalization on emerging market banking efficiency, and a significant negative moderation effect of NPAs. Lessons are drawn for other markets currently engaged in efforts of liberalization of their financial services industry. Keywords Liberalization, Emerging Markets, Banking System Efficiency, Capital Adequacy, Non-performing assets

How can robo-advisors retain end-users? Identifying the formation of an integrated post-adoption model

PurposeThis study's purpose is to propose an integrated post-adoption model based on expectation-confirmation model (ECM) and cognitive absorption (CA) theory to examine whether network factors, gamification factor, and quality factors as antecedents to end-users' beliefs can affect their continuance intention of the robo-advisor.Design/methodology/approachA total of 600 questionnaires were distributed in three sample banks in Taiwan, and sample data for this study were collected from these three banks' customers who had experience in using these banks' own robo-advisor to make their investment decisions. Consequently, 381 useable questionnaires were analyzed using structural equation modeling in this study, with a useable response rate of 63.5%.FindingsThis study proposes a solid research model that based on ECM and CA theory, three types of factors, network factors, gamification factor, and quality factors, as antecedents to end-users’ continuance intention of the robo-advisor have been examined, and this study's results strongly support the research model with all hypothesized links being significant.Originality/valueThis study contributes to end-users' continuance intention of the robo-advisor based on ECM, CA theory, theory of network externalities, gamification, and updated DeLone and McLean IS success model, and reveals deep insights into the evaluation of determinants in the field of end-users' continuance intention of the robo-advisor. Hence, it is especially worth mentioning that three types of determinants (i.e. network factors, gamification factor, and quality factors) are simultaneously evaluated, and extrinsic and intrinsic motivators are both taken into account in this study's research model development of end-users' continuance intention of the robo-advisor to acquire a more all-round and robust analysis.

The Spillover Effects of US Unconventional Monetary Policy on the Taiwanese Economy

Due to the severity of the 2007-2009 financial crisis, the United States Federal Reserve aggressively lowered the policy rate to zero and adopted several “unconventional” monetary policies, including “Quantitative Easing (QE).” The literature has long suggested that US monetary policies had strong spillover effects on foreign countries. Accordingly, the governor of Taiwan's central bank, Dr. Fai-Nan Perng, expressed strong concerns about such ripple effects of US policy on the Taiwanese economy. This paper follows Ammer et al. (2016) to use the Federal Reserve's unconventional monetary policy announcements to support the claim that US monetary policy has significant impacts on the Taiwanese economy and financial markets. Also, the spillover effects of pre-crisis “traditional” monetary policies are compared with the spillover effects from implementing “unconventional” policies during and post-crisis. The results show that US monetary policies exert significant impacts on the Taiwanese economy. Finally, we discuss the response of Taiwan's central bank to these spillover effects.

Effect of soaking time on targets and bycatch species catch rates in fish and crab trap fishery in the southern East China Sea

Management strategies for trap fisheries in the Taiwan Strait (TS) lack crucial information such as factors determining the catch rates and bycatch species as well as the effect of the soaking time (SKT) of traps. Therefore, we investigated logbook and voyage data recorder data from Taiwanese crab and fish trap vessels (2011–2016). The crab traps were distributed widely in the TS, whereas the fish traps were mostly used in the northeast and southwest of the TS. Hierarchical cluster analysis revealed that the TS could be divided into the Northern Taiwan Strait, where most fishers use crab traps to target Portunus sanguinolentus, P. pelagicus, and Charybdis feriatus; Kuroshio Current, with large catches of Dentex hypselosomus using fish traps; and Taiwan Bank, with large catches of Evynnis cardinalis and other species using both traps. The optimal target species catch rates were achieved for a SKT of 48 h, regardless of the trap type. The bycatch rates were found to be higher when the SKT was longer than 48 h for crab traps, whereas the bycatch rates for fish traps were unaffected by the SKT. These findings may aid the implementation of sustainable trap fishing through harvest strategy planning, spatiotemporal management, and bycatch reduction.

Compulsory Citizenship Behavior and Its Outcomes: Two Mediation Models.

Employees view compulsory citizenship behavior (CCB) as concessionary behavior they undertake because of pressure exerted by their organizations. This study applies affective events theory to CCB-workplace deviance relationships, and impression management theory to CCB-facades of conformity relationships, to posit that employee emotional exhaustion is an essential mediating factor that effectively explains how CCB contributes to workplace deviance and facades of conformity. This study utilizes two mediation models to investigate whether employees’ CCBs are positively related to their work deviance and false behavior, and how emotional exhaustion mediates those relationships. Two-wave data collected from 655 valid participants (480 males, 175 females; average age of 30.1 years) in a public sector bank and a large private bank in Taiwan supported our hypotheses. We conducted surveys with volunteer employees that included CCB, emotional exhaustion, facades of conformity, and work deviance. The results of this study uncovered statistically significant relationships between CCB and work deviance and between CCB and facades of conformity and revealed that emotional exhaustion significantly mediated these relationships. Implications and directions for future study are discussed.

The Establishment of a High Standard Skin Bank in Taiwan as a Burn Care Pioneer

Introduction: The establishment of skin banks is especially important in providing crucial cadaveric skin for burn treatments. Although the 2015 Formosa Fun Coast Explosion Disaster resulted in tragic casualties, it raised public awareness of the importance of having a well-functioning skin bank and led to the initiation of a skin bank development project, as well as the establishment of the first high standard skin bank in Taiwan. Methods: We standardized the size of our procured skin to avoid broken or disrupted skin graft, fit properly on a Zimmer Dermacarrier® for mesh expansion, and to be convenient for storage. We also integrated gamma radiation with the glycerol stored skin method for our skin preservation which effectively eradicates all contamination. Results: From 2016 to 2020, 453,100 cm2 of skin were procured from 62 donors and stored in the NTUH skin bank; 254,000 cm2 of which were utilized in the treatment of 75 patients. Between 2016 and 2017, 141 microbiological examinations were administered with six were positive. Since the introduction of gamma radiation, no contamination has been observed hereafter in our examinations. Conclusions: We report the success of establishing a high standard and well-functioning skin bank at NTUH that supply sufficient skin allografts in Taiwan. It is the first interhospital supply of charitable skin allografts across Taiwan. Being humanitarian, our skin bank is passing great love forward.

An application for classifying perceptions on my health bank in Taiwan using convolutional neural networks and web-based computerized adaptive testing: A development and usability study.

Background:The classification of a respondent's opinions online into positive and negative classes using a minimal number of questions is gradually changing and helps turn techniques into practices. A survey incorporating convolutional neural networks (CNNs) into web-based computerized adaptive testing (CAT) was used to collect perceptions on My Health Bank (MHB) from users in Taiwan. This study designed an online module to accurately and efficiently turn a respondent's perceptions into positive and negative classes using CNNs and web-based CAT.Methods:In all, 640 patients, family members, and caregivers with ages ranging from 20 to 70 years who were registered MHB users were invited to complete a 3-domain, 26-item, 5-category questionnaire asking about their perceptions on MHB (PMHB26) in 2019. The CNN algorithm and k-means clustering were used for dividing respondents into 2 classes of unsatisfied and satisfied classes and building a PMHB26 predictive model to estimate parameters. Exploratory factor analysis, the Rasch model, and descriptive statistics were used to examine the demographic characteristics and PMHB26 factors that were suitable for use in CNNs and Rasch multidimensional CAT (MCAT). An application was then designed to classify MHB perceptions.Results:We found that 3 construct factors were extracted from PMHB26. The reliability of PMHB26 for each subscale beyond 0.94 was evident based on internal consistency and stability in the data. We further found the following: the accuracy of PMHB26 with CNN yields a higher accuracy rate (0.98) with an area under the curve of 0.98 (95% confidence interval, 0.97–0.99) based on the 391 returned questionnaires; and for the efficiency, approximately one-third of the items were not necessary to answer in reducing the respondents’ burdens using Rasch MCAT.Conclusions:The PMHB26 CNN model, combined with the Rasch online MCAT, is recommended for improving the accuracy and efficiency of classifying patients’ perceptions of MHB utility. An application developed for helping respondents self-assess the MHB cocreation of value can be applied to other surveys in the future.

Distribution and Catch Rate Characteristics of Narrow-Barred Spanish Mackerel (Scomberomorus commerson) in Relation to Oceanographic Factors in the Waters Around Taiwan

This study investigated the relationship of the catch rates (CRs) of Spanish mackerel (Scomberomorus commerson) with oceanographic factors in the waters around Taiwan by using high-resolution fishery and environmental data for the period 2011–2016. The investigation results revealed that trammel nets accounted for 69.79% of the total catch of S. commerson and were operated mostly in the Taiwan Strait (TS). We noted seasonal variations in the distribution of high CRs. These CRs were observed in the southwestern TS, including the waters along the southwestern coast of Taiwan and around the Penghu Islands, and extended to the Taiwan Bank during autumn; they increased in winter. To predict the spatial and temporal patterns of Spanish mackerel density and their relationship with oceanographic and spatiotemporal variables, generalized additive models were used. These models explained 48.4% of the total deviance, which was consistent with the assumed Gaussian distribution. Moreover, all variables examined were significant CR predictors (p < 0.05). Latitude and longitude were the key factors influencing the spatiotemporal distribution of S. commerson, and sea surface chlorophyll a concentration was a key oceanographic factor. Observing projected changes in El Niño/Southern Oscillation events for S. commerson revealed that CRs were higher and distributed further southward during La Niña events than during other events. We inferred that the S. commerson distribution gradually moved toward the southwest with the northeast monsoon, which was enhanced during La Niña in winter.

Effect of topographic background on sand wave migration on the eastern Taiwan Banks

Observational analysis has revealed an apparent immobility of giant sand waves on the Taiwan Banks, while sand waves on the eastern Taiwan Banks show distinct dynamics influenced by the underlying larger-scale sand ridge bedforms. In this study, the effects of these sand ridge bedforms on sand wave migration and the local hydrodynamic environment were investigated using bathymetric and hydrodynamic datasets from 2016 and 2018. Upon separating the NNW-SSE sand ridge crest, the opposing sand wave migration and complementary sediment loss/gain on either side of the sand ridge are interpreted as convergence processes that serve to maintain the shape of the sand ridge. Analysis of the hydrodynamics revealed that, during the flood phase, the northward directed flow on the western side of the ridge crest was enhanced due to rapid shoaling. This caused the development of a flow shadow zone on the eastern side of the ridge crest, where the flow was rotated and weakened. During a tidal cycle, the dominance of the flood current on the western side of the ridge resulted in northward migration of sand waves. Conversely, due to the weakened flood current on the eastern side of the ridge, sand waves migrated southward in response to the stronger ebb current. This study thus provides insights into bedform dynamics in complex morphological settings and the maintenance mechanism of morphodynamic bedform systems.

The impact of market share on efficiency of commercial banks: Resampling slacks‐based measure data envelopment analyses model

This study applies resampling data envelopment analyses (DEA) and includes two estimation models: Triangular and Past–Present Models, to explore the operating efficiency of 37 commercial banks in Taiwan from 2014 to 2016. The empirical results are as follows: 1. No matter which models were used, the most inefficient banks from 2014 to 2016 were Bank of PANHSIN. 2. Resample model can more accurately estimate the relative efficiency of the banks than the slacks‐based measure (SBM) model. 3. Based on the Resample model, the empirical results of the SBM model show that the overestimation of the efficiency ranking is more serious.