Since the liberalization of banking sector in 1980, the financial industry in Taiwan has become more competitive. Faced with the trend of financial globalization, Taiwan’s government have started removing entry barriers and relieved restrictions on the business scope of financial institutions and passed the Financial Holding Company Act in 2001. Financial Holding Company Act led to the establishment of 14 FHCs during 2001 and 2002. This paper aims to study the performance efficiency of Financial Holding Companies banks in Taiwan. This research conducts the Data Envelopment Analysis (DEA) to measure performance efficiency among 14 bank subsidiaries of FHCs. The research samples observed in the study are from years 2013 and 2014 respectively. The results showed that three banks were operating at their full efficiency during the observation period.
