Developing a Network Dea Model to Measure the Efficiency of Banking with the Governance, Innovation and Operations

After the 2008 financial crisis, in order to improve the banking system's ability to withstand economic and financial shocks, financial reforms in various countries have strengthened financial supervision and governance mechanisms. Through the value-added and integration of FinTech, many innovative financial service models have been derived. Financial innovation becomes the core factor for banks to maintain their competitiveness. In response to the current operating environment of banks, this study develops a Network DEA model that embodies the internal structure for the banking efficiency measurement, which includes the governance, innovation and operations. The shared inputs, undesired output and organization learning effect are incorporated into the proposed model. There are 35 banks in Taiwan will be empirically investigated by this proposed model. Managerial implications for improving inefficient banks will be further discussed.