Analysis of Factors Affecting the Operating Efficiency of Viet Nam Commercial Banking System

2014 ◽  
Author(s):  
Huan Huu Nguyen ◽  
Duy Khanh Pham
Keyword(s):  
Banking System ◽  
Commercial Banking ◽  
Operating Efficiency ◽  
Viet Nam ◽  
Factors Affecting

Do management practices and competition levels increase commercial bank profits? Evidence from Can Tho, Viet Nam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chi Huu Phuong Ho ◽  
Kiet Tuan Nguyen
Keyword(s):  
Commercial Banks ◽  
Management Practices ◽  
Banking System ◽  
Viet Nam ◽  
Cross Sectional ◽  
Content Type ◽  
Factors Affecting ◽  
Management Quality ◽  
Competition Level ◽  
Bank Profits

PurposeManagement practices and competition levels have been shown as important factors affecting the performance of enterprises that do not include banks. The paper, thus, aims to measure management practices and to study the effect of management quality and competition level on the performances of the first-level branch of commercial banks in the context of the Viet Nam banking system.Design/methodology/approachThe study employed the approach of Bloom and Van Reneen (2007) to quantify management practices of the commercial banks. The level of competition was measured by the number of competitors suggested by Nickell (1996) and the index suggested by Boone (2008). Finally, the effects of management practices and competition level on the bank performances were jointly estimated through a Cobb–Douglas production function, similar to the one used by Bloom et al. (2014).FindingsThe results show that the management practices score is, on average, above the average. While the management practices are found to positively correlate with profits, the competition level is found to significantly reduce bank profits.Research limitations/implicationsCross-sectional data limit the findings of the paper to a point of time. In the future, studies with panel data are desirable.Practical implicationsThe findings of the study help bank managers to make more informed decisions about management practices. Any policy promoting new entrants to the banking market should be carefully considered.Originality/valueThe paper is the first to measure the management practices of commercial banks and to explore the impacts of management quality and competition level on bank performances.

scholarly journals COMPETITITON POWER, RISK AND EFFICIENCY: EVIDENCE FROM VIETNAM COMMERCIAL BANKING SYSTEM

2020 ◽  
Vol 42 (06) ◽  
Author(s):  
DƯƠNG THỊ ÁNH TIÊN ◽  
PHẠM VIỆT HÙNG
Keyword(s):  
Market Power ◽  
Banking System ◽  
Commercial Banking ◽  
Competitive Power ◽  
Bank Efficiency ◽  
System Gmm ◽  
Factors Affecting ◽  
Macroeconomic Variables ◽  
Negatively Associated ◽  
Positive Effect

The main purpose of this paper investigates factors affecting bank efficiency, especially competitive power and risk in the context of Vietnamese banks from 2005-2014. The authors use a number of indicators to measure risk and efficiency. The study also considers other factors including industry and macroeconomic variables. Employing two step system GMM, the authors find that risk is negatively associated with bank efficiency. Market power has a positive effect on bank efficiency. The authors also find the evidence of other factors affecting bank efficiency.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

EMERGING TRENDS IN BANKING SECTOR - ITS CHALLENGES AND OPPORTUNITIES

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Karigoleshwar .
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Major Change ◽  
Commercial Banking ◽  
Foreign Banks ◽  
Emerging Trends ◽  
Reserve Bank ◽  
Challenges And Opportunities ◽  
Multiple Regions

In financial sector the banking industry is the largest player, has also been undergoing a major change. Today the banking industry is stronger and capable of withstanding the pressures of competition. Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in commercial banking. The present era the cashless transactions, E-cheques, mobile wallets. The paper attempts to present the emerging trends and its challenges that recently emerged in the banking sector with special emphasis on digitization. It will be useful to the academicians, banking and insurance personnel, students and researchers. Common readers also know the latest innovations in banking sector

scholarly journals Efficiency of Commercial Banking in Developing Countries

Mathematics ◽  
2021 ◽  
Vol 9 (14) ◽  
pp. 1597
Author(s):  
Violeta Cvetkoska ◽  
Katerina Fotova Čiković ◽  
Marija Tasheva
Keyword(s):  
Developing Countries ◽  
Commercial Banks ◽  
Feasible Solution ◽  
Banking System ◽  
Efficiency Score ◽  
Commercial Banking ◽  
Real Situation ◽  
Super Efficiency ◽  
Bank Management ◽  
The Stability

The aim of this paper is to evaluate the relative efficiency of commercial banks in three developing countries in Europe (North Macedonia, Serbia, and Croatia) in the period from 2015 to 2019, and to provide targets for improvement for the inefficient banks by using DEA. The variables are selected under the income-based approach. Based on the output-oriented BCC model, unusual results are obtained for a few commercial banks in each country, that is, they are BCC relative efficient, which is contrary to the real situation. In order to identify outliers that can affect the efficiency results, a super-efficiency procedure is applied so that banks with a super-efficiency score higher than 1.2 (outliers) or for which a feasible solution was not found are considered in detail and removed, and then the output-oriented BCC model is rerun. Based on the obtained results, the Macedonian commercial banking system shows the highest efficiency (91.1%), followed by the Croatian (90.9%) and the Serbian (81.9%) banking system. The estimated targets for improvement of the inefficient commercial banks could help their top bank management in better resource allocation and making fact-based and faster decisions by which they can improve the operation of the banks they lead and contribute to the stability of the financial system.

scholarly journals Does Banking Management Affect Credit Risk? Evidence from the Indian Banking System

2018 ◽  
Vol 6 (3) ◽  
pp. 67 ◽  
Author(s):  
Laxmi Koju ◽  
Ram Koju ◽  
Shouyang Wang
Keyword(s):  
Credit Risk ◽  
Default Risk ◽  
Banking System ◽  
Capital Requirements ◽  
Operating Efficiency ◽  
Investment Strategies ◽  
Empirical Results ◽  
Bank Managers ◽  
Credit Standards ◽  
The Impact

This study investigated the impact of banking management on credit risk using a sample of Indian commercial banks. The study employed dynamic panel estimations to evaluate the link between banking management variables and credit risk. The empirical results show that an increase in loan portion over total assets does not necessarily increase problem loans. The findings suggest that high capital requirements and large bank size do not reduce default risk, whereas high profitability and strong income diversification policies lower the likelihood of default risk. The overall empirical results supported the “operating efficiency”, “diversification” and “too big to fail” hypotheses, confirming that credit quality in the banking industry is mainly driven by profitability, banking supervision, high credit standards and strong investment strategies. The findings are relevant to bank managers, investors and bank regulators, in formulating effective credit policies and investment strategies.

Banking and Economic Growth in Sweden before World War I

1978 ◽  
Vol 38 (3) ◽  
pp. 650-680 ◽  
Author(s):  
Lars G. Sandberg
Keyword(s):  
Economic Growth ◽  
World War I ◽  
International Comparisons ◽  
Banking System ◽  
Commercial Banking ◽  
World War ◽  
Paper Money ◽  
History Of

The article sketches the history of Swedish commercial banking from 1656 until World War I, with special attention to the post-1850 period. Emphasis is placed on the relationships between economic growth and banking. International comparisons based on the quantitative measures developed by Rondo Cameron and Raymond Goldsmith are made. It is concluded that at all stages of its early industrialization Sweden had a remarkably large and efficient banking system. This, in turn, was largely the result of the general population's long experience with banking and paper money and their generally high levels of literacy and education.

scholarly journals Governance of Vietnam's Financial Institutions in Accordance with International Standards until 2020

2016 ◽  
Vol 23 (01) ◽  
pp. 50-76
Author(s):  
Huong Tram Thi Xuan ◽  
Canh Nguyen Phuc ◽  
Nhu Nguyen Tu
Keyword(s):  
Multiple Regression ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking System ◽  
Commercial Banking ◽  
International Standards ◽  
Bank Performance ◽  
Related Factors ◽  
Regression Approach ◽  
Shed Light

In this article, using a combination of risk-related factors, we address the governance of financial institutions, mainly Vietnam’s commercial banks, in light of such international standards as of Basel II and III. Additionally, we employ multiple regression approach to shed light on the effect of each type of risk on bank performance and propose a few recommendations for effectively governing the commercial banking system of Vietnam until 2020.

scholarly journals Analysis of Internal and External Determinant Variables towards Profitability of Islamic Banking in Indonesia (2014-2020)

2021 ◽  
Vol 4 (1) ◽  
pp. 18-34
Author(s):  
Febri Ramadhani ◽  
Muhammad Rizkan
Keyword(s):  
Negative Relationship ◽  
Banking System ◽  
Islamic Banking ◽  
Correction Model ◽  
Factors Affecting ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Relationship Of

Indonesia is a country that adheres to a dual banking system, namely conventional and Islamic Banking. The growth rate of Islamic banking in the last three years is higher than conventional banking. However, in total assets, Islamic banking is still far behind conventional banking. Therefore, it is necessary to study further the performance of Islamic banking reflected in its profitability. So, it becomes an alternative input in determining Islamic banking policies. This study aims to know the factors affecting the profitability (ROA) of Islamic Banking in Indonesia. The data used are the 2014-2020 monthly data in the amount of 79 data. The method used in this study is a Vector Error Correction Model (VECM) to determine the effect of long-run and short-run relationships. The results of the study showed that the long-run relationship of the NPF variable affected and was significant positive toward ROA, CAR affected and was significant negative toward ROA, while the inflation variable had a negative relationship and not significant toward ROA. The results of the short-run relationships showed that the NPF and CAR variables positively affected ROA, while the inflation variable did not significantly affect the ROA.

Sign in / Sign up

Export Citation Format

Share Document