Abstract

The purpose of this study is to apply the theory of industrial organization to examine the operational performance and its relations to the industry competitive characteristics and business conduct of the foreign commercial banks in Taiwan area.
The determinants of the market performance are empirically probed to analyze and review how the market structure and market conduct influencing the market process as well as operational performance.
Basically, the empirical results indicate the major elements which affecting the operational performance of the foreign commercial banks and prove the linkage effects among competitive nature, business strategies and its market performance, and provide useful information and suggestions to promote the well-interactions between foreign and domestic commercial banks in Taiwan area.