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.

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.

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 A Decision Support Model for Measuring Technological Progress and Productivity Growth: The Case of Commercial Banks in Vietnam

Axioms ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 131
Author(s):  
Chia-Nan Wang ◽  
Ngoc-Ai-Thy Nguyen ◽  
Thanh-Tuan Dang ◽  
Thi-Thuy-Quynh Trinh
Keyword(s):  
Productivity Growth ◽  
Commercial Banks ◽  
Banking System ◽  
Bank Performance ◽  
Net Income ◽  
Decision Support Model ◽  
Bottom Line ◽  
Window Analysis ◽  
Dea Models ◽  
Managerial Implications

The interactive relationship between the banking system and enterprise makes up the role that affects a national economy. Significantly, the relationship between banking and technology has become tighter over the past few decades. An assessment of bank performance is critical for understanding their position and provides valuable information to practitioners. In this paper, we assess the performance of the top 18 commercial banks in Vietnam during 2015–2019. The assessment utilizes two data envelopment analysis (DEA) models while involving the banks’ performance in six dimensions, including assets, deposits, operating expenses, liabilities as inputs, while treating loans and net income as outputs. Using the Malmquist measurement, the total productivity growth indexes of the banks are obtained, which are decomposed into technical and technological evolutions. Window analysis is used to compute the efficiencies of the banks in every single year in 2015–2019. From the results of Malmquist, most banks are found to decrease their Malmquist productivity indexes from 2015 to 2019, wherein both of their technical and technological indexes declined. Window analysis indicates B6-SHBank, B1-Vietinbank, and B18-PetrolimexGroup as the most efficient banks during 2015–2019, and in the interim, B16-BaoVietBank, B11-NationalCitizen, and B13-VietnamMaritime ranked on the bottom line. The managerial implications of this research help to reflect the comprehensive insights of the top Vietnamese commercial bank performance and offer a strategic guideline for decision-makers toward sustainable development in the banking industry.

scholarly journals Revenue Diversification, Risk and Bank Performance of Vietnamese Commercial Banks

2019 ◽  
Vol 12 (3) ◽  
pp. 138 ◽  
Author(s):  
Ngoc Nguyen
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Transformation Model ◽  
Annual Reports ◽  
Bank Performance ◽  
Method Of Moment ◽  
Revenue Diversification ◽  
Interest Income ◽  
Using Data

In the future, when the process of economic integration in the banking sector is more powerful, and competitive, diversifying revenue is an inevitable and objective trend to help the banks increase profits, minimize risks and improve their competitive position in the system. The research is on the relationship between revenue diversification, risk and bank performance using data from audited financial statements and annual reports of 26 commercial banks listed and unlisted in Vietnam during the period 2010–2018. The research method uses Generalized Method of Moment (GMM) modeling techniques to solve endogenous problems, variance and autocorrelation in the research model. Research results show that diversification negatively impacts profitability and the higher the diversification, the higher the risk of commercial banks. However, the more diversified listed banks, the more increased the bank’s stability. The banks show the weakness and lack of experience of the banking system in developing a reasonable profit transformation model. The revenue diversification of banks is currently passive and moves slowly. Interest income is still the motivation of bank development, boosting profit growth. Growth, as well as the contribution from service activities, is not commensurate with potentials; although there are many positive points, they are not enough to cover risks from net interest income activities.

scholarly journals Does banking sector performance promote economic growth? Case study of Jordanian commercial banks

2017 ◽  
Vol 15 (2) ◽  
pp. 55-64 ◽  
Author(s):  
Ayman Mansour Khalaf Alkhazaleh
Keyword(s):  
Economic Growth ◽  
Commercial Banks ◽  
Banking Sector ◽  
Positive Association ◽  
Political Stability ◽  
Commercial Banking ◽  
Least Square ◽  
Bank Performance ◽  
Significant Positive Association ◽  
Ordinary Least Square

Spurred by the need to evade possible parameter bias associated with earlier works, this study intended to address the subject of whether performance of commercial banking contributes to economic growth. With the aim of answering this question, the present review concentrates on analyzing the association between profitability, deposit and credit facilities as proxy for performance of commercial banks while gross domestic product proxies economic growth. The population of the study is characterized by the Jordanian banking industry; the study enclosed a period of six years from 2010 to 2015 constructed on the annual report of thirteen chosen banks. Using Ordinary Least Square, the regression outcomes found a significant positive association between measures of bank performance and economic growth. Findings demonstrate that measures of bank performance in particular profitability deposits credits have positive relationship with economic growth as measured by GDP. The empirical results suggest that the policy creators should make arrangements to augment and prompt the banking sector in Jordan on account of its key significance in making and advancing development of the economy. It additionally can be inferred that not only commercial banking performance but also other movables such as political stability and technology may assume essential part in the economic prosperity in Jordan.

scholarly journals Analysis of Chinese Commercial Banks’ Risk Management Efficiency Based on the PCA-DEA Approach

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Xiao Shi ◽  
Wenqi Yu
Keyword(s):  
Risk Management ◽  
Technical Efficiency ◽  
Commercial Banks ◽  
Economies Of Scale ◽  
Banking System ◽  
Principal Component ◽  
Commercial Banking ◽  
Scale Efficiency ◽  
Management Efficiency ◽  
Chinese Banking Industry

As a special type of enterprises with high risks, Chinese commercial banks’ risk management plays an important role in banks’ business process. Measuring and improving the risk management efficiency of the Chinese commercial banking system has recently attracted increasing interest. Previous studies analyze the business performance of commercial banks from the perspective of the overall management level of banks, and few articles focus on the risk management ability of banks. This paper evaluates the technical efficiencies of Chinese commercial banks’ risk management by the DEA-BCC model with window analysis to come up with some recommendations for policy makers. The technical efficiency is then decomposed into pure technology efficiency and scale efficiency. According to the banking risk supervision indicators released by the China Banking Regulatory Commission, we choose the indicators of 26 commercial banks’ risk management during the period of 2011 to 2019. Principal component analysis (PCA) is applied to delete redundant input indicators. The paper gives a dynamic evaluation of technology efficiency, pure technology efficiency, and scale efficiency. The main empirical results are as follows: (1) the technical efficiency of Chinese commercial banks’ risk management is low, and the differences among three different types of banks are large. (2) The pure technology inefficiency of Chinese commercial banks’ risk management has become a key factor restricting the improvement of the risk management of the Chinese banking industry. (3) The Chinese commercial banks’ risk management faces a serious problem which is economies of scale. (4) The technical efficiencies of Chinese commercial banks’ risk management fluctuate greatly, and management capabilities need to be enhanced urgently.

scholarly journals Performance of Vietnamese commercial banks in ASEAN Economic Community

2020 ◽  
Vol 164 ◽  
pp. 09001
Author(s):  
Trinh Doan Tuan Linh
Keyword(s):  
Technical Efficiency ◽  
Commercial Banks ◽  
Stochastic Frontier Analysis ◽  
Banking System ◽  
Commercial Banking ◽  
Average Output ◽  
Frontier Analysis ◽  
Average Efficiency ◽  
Asean Countries ◽  
Research Period

In this study, the author assesses and compares the performance of commercial banks in Vietnam and ASEAN countries in the period of 2013-2017 by using parametric approach, using SFA method (Stochastic Frontier Analysis). The results showed that the average efficiency of ASEAN commercial banks in the study period was 0.77, the lowest efficiency was 0.11, the highest efficiency was 0.96. This result also shows that the efficiency of ASEAN commercial banks in the period of 2013 - 2017 is relatively low, with this result if the average output does not change, commercial banks can save as much as possible. 23% of the input. The results also show that the average efficiency of Brunie commercial banks is the highest at 0.87%, ranked second is Thai1and with average technical efficiency of 0.83. Ranked last among the 9 ASEAN commercial banking systems in the research period is Singapore commercial banks with average technical efficiency of 0.72 above are Lao commercial banks with an efficiency of 0.73. Vietnam's commercial banking system with technical efficiency in the research period was 0.75, ranked 6th among 9 ASEAN countries.

Impact of Financial Crisis on Credit Risk: Pre- and Post-financial Crises 
in an Emerging Economy

2020 ◽  
Vol 9 (2) ◽  
pp. 118-132
Author(s):  
Syed Moudud-Ul-Huq ◽  
Rabaka Akter ◽  
Tanmay Biswas
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Credit Risk ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
Commercial Banking ◽  
Real Economy ◽  
Credit Risk Management ◽  
The Global Financial Crisis

This aim of the article is to establish a model to discuss the reasons for changing the level of credit risk among the commercial banks of Bangladesh during the global financial crisis (GFC). Credit risk has been remaining as the essential and core risk in commercial banking activities. Multiple regression analysis is used to test the relationship among the level of credit risk as a dependent variable and financial crisis, other bank-level variables and macroeconomic variables. The causes of the GFC revealed not only systematic or structural imbalances but also the necessity to keep and strengthen the principles of credit risk management. We analyse the leading causes of the recent GFC. Moreover, the lessons that must be learnt from the weaknesses of credit risk management systems. Credit risk was found to respond to macroeconomic conditions, which indicate strong feedback effects from the banking system to the real economy. This article represents the analysis of the influence of the financial crisis on credit risk management in commercial banks and summarizes the challenges faced by banks for credit risk improvement. We hope that this reality creates new opportunities for managing credit risk in the future to increase this importance in the banks and the overall economy of Bangladesh.

scholarly journals Determinants of Financial Sustainability of Financial Intermediaries

2021 ◽  
Vol 10 (1) ◽  
pp. 01-10
Author(s):  
Champika Liyanagamage
Keyword(s):  
Sri Lanka ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Business Environment ◽  
Commercial Banking ◽  
Institutional Setting ◽  
Bank Stability ◽  
Credit Growth ◽  
Economic Implications

This paper provides interesting insights into the practices of banks and institutional setting in Sri Lanka. The sustainability and stability of banks that makes up an economy’s banking system should be sound at all time. This paper aimed at analyzing the determinants of banking sector stability in Sri Lanka. The study used a broad set of macro and bank level data covering 22 commercial banks for the period 1996-2016. The fixed effect GLS panel data model tested in this paper sets the relationship between bank stability measure; Z-score and business environment which includes bank characteristics and the elements of macro environment. The analysis of the study revealed lower level of Z-scores and thus lower level of bank stability, indicating a higher risk associated with the commercial banking sector in Sri Lanka.  From among the variables tested, strong evidence was found for a positive effect of bank efficiency on bank stability and a negative effect of credit growth on bank stability. At macro level, bank stability is promoted at a higher rate when the economy is more developed and stable. The results imply that efficiency of commercial banks needs to be further improved and regulatory and policy environment should be strengthened to manage the credit growth at the bank level. Further, it is suggestive to strengthening bank supervision and other financial infrastructure in order to ensure sustainability of the banking sector. Thus, the present paper contributes the current banking literature by unveiling the explicit and unforeseen economic implications associate with individual bank operations and macro imbalance which are particularly unique in underdeveloped countries.

scholarly journals An Analysis on the Factors Affecting Credit Selection In BPR to Increase Competitiveness (BPR Case Study in Surabaya)

2020 ◽  
Vol 4 (2) ◽  
pp. 159
Author(s):  
Nobertus Purnomo Lastu ◽  
Werner Ria Murhadi ◽  
Ratna Widyanti W
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Commercial Banking ◽  
Competitive Advantages ◽  
Factors Affecting ◽  
Determinant Factors ◽  
Factors Influencing ◽  
Logistic Method ◽  
Main Factors

Bank Perkreditan Rakyat (BPR) is part of  the  banking  financial institutions  apart from the commercial  banking. .One of the activities of the BPR is to distribute the credits as done by the commercial banks. Problems. BPR as micro financial institutions, in doing their business to  distribute  the credit up to certain amount, are faced with  the  commercial banks  which  have more  competitive advantages, both in the price  and facilities provided. Objective of this research is to identify the factors influencing the customers in making decisions to take the credit at BPR. By identifying the determinant factors in choosing the banks, BPR can use it to improve their services to the customers and at the same time BPR can use it as a strategy in  giving credit to the customers or debtors. The metode employed in this study was regressive logistic method, which was  used to  identify  what factors determine the customers to choose credit at BPR. The conclusion is that the procedures and personality of staff are the main factors making the customers choose credit at BPR

Sign in / Sign up

Export Citation Format

Share Document