| dc.description.abstract | This study investigates the key determinants of branch earnings by using the Ordinary Least Squares (OLS) method to conduct multiple regression analysis on the branch data of Bank T from 2015 to 2021. The independent variables of this study are divided into five categories according to their attributes including branch attribute, assets, liabilities, processing fees, and comprehensive. And the regression empirical results show that:
1. Processing fees: Insurance, wealth management fees and contracted merchant receipts have a significant positive contribution to earnings, while foreign exchange business volumes have no significant impact on earnings.
2. Assets: Personal loans and corporate loans have a significant positive impact on earnings, and the unit contribution of personal loans is greater than that of corporate loans, while the previous Non-Performing Loans Ratio has a significant negative impact on the current earnings.
3. Liabilities: NT dollar and foreign currency demand deposits have a relatively large positive contribution on earnings, NT dollar time deposits have a slight positive contribution, while foreign currency time deposits have no significant impact on earnings.
The empirical results of this study are generally consistent with the research hypothesis. Surprisingly, foreign exchange volumes do not have a significant impact on earnings. It is inferred that this is related to the following factors: First, the high cost of personnel training, such as the cost of foreign exchange personnel training, operation training, cash costs of foreign currency and insurance costs, etc. Second, the bargaining power of customers may compress the surplus. For example, the customers of large branches are mostly listed or OTC companies with high bargaining power. Therefore, the fees and exchange differences that the bank can charge are limited, and the bank is more likely to undertake transactions at the cost exchange rate in order to win business. However, since foreign exchange business is an extension of corporate finance, and foreign demand deposits can still have a significant positive impact on branch earnings. Therefore, foreign exchange business should still be one of the key business for banks to develop in order to provide comprehensive services and enhance banking professionalism. | en_US |