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Productivity growth is one of the major sources of economic development. Current studies on productivity change have applied Links of London Malmquist productivity index MPI approach, for example, Alam , Ataullah et al. Guzman and Reverte , and Liu , which is evaluated from efficiency scores based on DEA linear programming approach. Originally, Malmquist introduced a quantity index, defined as the amount by which one consumption bundle must be radially scaled in order to generate the same utility level provided by some base consumption bundle. The MPI was first introduced in productivity literature Links of London Big Rock 'Diamond' Ring Charm Caves et al. And Nishimizu and Page used a parametric programming approach to compute the index for the first time in the empirical context. This index estimates the change in resource use over time that is attributable to efficiency change and due to technological change. In this paper, we employ the MPI to investigate the productivity change on credit risk of Taiwanese commercial banks over the period . Based on the measurement of credit risk efficiency and productivity change on credit risk, we classify the commercial banks in Taiwan into four categories to help realize the competitiveness and productivity growth on credit risk management. METHODOLOGY This study combines DEA model with financial ratios to evaluate the credit risk efficiency of commercial banks in Taiwan over the period . Links of London Dome Jade Charm order to understand the productivity change on credit risk management, we employ MPI which is evaluated from credit risk efficiency scores based on DEA linear programming approach. We describe the methodology as follows DEA and MPI. Data Envelopment Analysis DEA We assume that there are N DMUs DMUj', j l..n within a sample having access to the same technology for transforming a vector of m inputs xsub ij .m into a vector of s outputs ysub rjr l..s. Then the relative efficiency of DMUsub j can be expressed as .. where vf and ur represent input and output multipliers, respectively. And the associated outputoriented CCRDEA model is max ...where jsub k represents one of the DMUsub j, DMUsub j, φsub j And δsub j. is a real variable and Sj is a nonnegative vector. Model is built on the assumption of constant returns to scale CRS of activities and that it evaluates technical efficiency TE. links of london sale fact, since the very beginning of DEA studies, various extensions of the CCR model have been proposed. The BCC model is a common representative of those extensions. The BCC model has its production frontiers spanned by the convex hull of the existing DMUs.