The operating efficiency of Taiwanese commercial banks is a key factor on Taiwan's economic development. However, the changes in credit risk of the banks have serious impact on productivity change. In this paper, we use financial ratios to assess credit risk of 34 Taiwanese commercial banks before and during the global financial crisis over the period 2007-08, and investigate the productivity change based on the changes in credit risk with the Malmquist productivity index (MPI) approach, which is calculated from efficiency scores based on data envelopment analysis (DEA). Then we apply Tobit regression to identify the key variables which significantly affect the efficiencies in c 6 pt redit risk and to analyze the correlation between the experience of M & As investment and productivity change. And according to earning per share (EPS) and MPI, we classify the 34 banks into four groups. We find that different groups of banks should have different strategies of credit risk management to survive in this changing environment. Furthermore, the increase of the ratio of total loans to total assets could not improve technical efficiency (TE) and pure technical efficiency (PTE) at the decision making units (DMUs) due to the increase of credit risk. Also, the experience of M & As investment could have poor help on efficiency/productivity change on credit risk at the DMUs.