This paper utilizes the Restrepo-Tobón and Kumbhakar (2017) non-standard profit function to address output price mismeasurement and market imperfection issues in Taiwan's banking industry. We estimate and compare the synergy of financial holding banks (FHBs) and non-financial holding banks (Non-FHBs) in terms of various efficiency measures. Non-FHB private banks exhibit the highest meta-frontier cost, revenue, and profit efficiencies. Non-FHB pan-public banks follow, FHB private banks rank third, and FHB pan-public banks perform the least efficiently. Overall, Non-FHBs outperform FHBs, with private banks demonstrating the highest efficiency scores across measures, while pan-public and foreign banks show similar performance.
