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 Profitability and Risk in Relation to Income Diversification of Vietnamese Commercial Banking System

2016 ◽  
Vol 23 (02) ◽  
pp. 61-76
Author(s):  
Vinh Vo Xuan ◽  
Mai Tran Thi Phuong
Keyword(s):  
Panel Data ◽  
Empirical Evidence ◽  
Commercial Banks ◽  
Lower Risk ◽  
Banking System ◽  
Commercial Banking ◽  
Bank Risk ◽  
Income Diversification ◽  
Data Set ◽  
The Impact

Employing a panel data set including 37 joint-stock commercial banks covering the period from 2006 to 2013, this paper investigates the impact of income diversification on bank risk and returns. Our results show that increased income diversification results in higher rates of bank returns. However, when risk is considered, the increased income diversification leads to lower risk-adjusted returns. Empirical evidence also shows that the income diversification is not beneficial to joint-stock commercial banks in Vietnam.

scholarly journals The Impact of Bank-Specific Factors on the Efficiency of Pakistan's Commercial Banks: Data Envelopment Analysis and Tobit Regression Model Framework

2019 ◽  
Vol IV (IV) ◽  
pp. 600-611
Author(s):  
Farhat Ullah Khan ◽  
Aman Ullah Khan ◽  
Inayat Ullah
Keyword(s):  
Data Envelopment Analysis ◽  
Regression Model ◽  
Commercial Banks ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Model Framework ◽  
Specific Factors ◽  
The Impact ◽  
Tobit Regression Model ◽  
Bank Specific Factors

This study aims to measure the effects of bank-specific factors on the efficiency of Pakistan's twenty-seven (27) commercial banks. Efficiency was computed by input-oriented data envelopment analysis approach under CRS (constant return to scale) and VRS (variable return to scale) assumptions. The results revealed that overall inefficiency in commercial banks was to tune of 10 percent and was caused by both managerial incompetence and uneconomical bank's size. However, the uneconomic scale size remained the dominant source of inefficiency at individual banks level, and most of the banks exhibited a decreasing return to scale (DRS) behaviour. Furthermore, efficiency scores were regressed by bank-specific factors using the Tobit regression model. Among the bank-specific factors, Profitability, liquidity, bank size had a significant and positive impact, while market share and Asset quality had a negative and substantial effect on all the efficiency parameters.

scholarly journals Competition and efficiency among Vietnam's commercial banks

2017 ◽  
Vol 24 (01) ◽  
pp. 104-118
Author(s):  
Thom Phan Thi ◽  
Thuy Than Thi Thu
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking System ◽  
Commercial Banking ◽  
Bank Competition ◽  
Profit Efficiency ◽  
Two Factors ◽  
Negative Effect ◽  
Testing Techniques ◽  
The Impact

This article investigates the impact of bank competition on cost and profit efficiency in the Vietnam’s commercial banking system dur-ing 2005–2014. Based on different testing techniques, our results agree with the findings of Turk-Ariss (2010) that bank competition has a negative effect on profit efficiency and those of Pruteanu-Podpiera et al. (2008) and Maudos and de Guevara (2007) that bank competition is negatively related to cost efficiency. We also find that inflation and lag of competition are the two factors affect-ing the competition among these banks.

scholarly journals Impact of Operational Efficiency and Customer Satisfaction on Banking Performance: Empirical Examination on UAE Islamic Banking

2019 ◽  
Vol 8 (2S10) ◽  
pp. 304-309
Keyword(s):  
Customer Satisfaction ◽  
Customer Service ◽  
Structural Equation ◽  
Goodness Of Fit ◽  
Banking System ◽  
Operational Efficiency ◽  
Islamic Banking ◽  
Empirical Examination ◽  
Study Results ◽  
The Impact

The primary aim of the research is to examine the effect of operational efficiency and customer satisfaction in case of Islamic banking performance in UAE. Proposed model’s evaluation was done using questionnaire survey data that was obtained from 158 valid responses from Customer Service Officers, Bank Managers, Front Line Officers, and Assistant Manager working in the Islamic banks of UAE. Structural Equation Modelling via PLS3.0 software was used to define the crucial levels of associations and interactions between the tested factors. The proposed model, as evidenced by the goodness of fit of the model to the data, explained 39% of the variance in the Islamic banking performance. The multivariate analysis showed a major impact of operational efficiency on Islamic banking performance as compared to the impact on customer satisfaction. The study results gave insights into the strategies of Islamic banking system.

Income diversification and financial performance of commercial banks in Vietnam

2019 ◽  
Vol 12 (3) ◽  
pp. 185-199
Author(s):  
Hiep Ngoc Luu ◽  
Loan Quynh Thi Nguyen ◽  
Quynh Huong Vu ◽  
Le Quoc Tuan
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Positive Impact ◽  
Banking System ◽  
Foreign Banks ◽  
Annual Reports ◽  
Income Diversification ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of income diversification on the financial performance of commercial banks in Vietnam over the period 2007–2017. It then provides additional analysis to examine whether the diversification–performance nexus is conditioned upon bank experience and ownership structure. Design/methodology/approach The financial information of each bank were manually collected from bank annual reports. In the empirical model, a number of modern econometric techniques, including panel OLS with fixed effects and a two-step system GMM estimator, were utilised to achieve the research objectives. Findings The empirical results show that income diversification has a positive impact on banks’ performance. However, the effect varies across different types of banks. Specifically, the authors find that while diversification benefits state-owned and foreign banks, it exhibits a detrimental effect on the financial performance of other non-state owned domestic banks. In addition, the authors further find that the positive impact of diversification is more prominent for banks with more experience in the market. Originality/value This study is among the first to empirically investigate the relationships between income diversification and the financial performance of commercial banks in Vietnam. In this sense, the findings of this study could draw important inferences for researchers, policy makers and bank managers towards more appropriate diversification strategies, to ensure the safety and soundness of the whole banking system.

scholarly journals Effects of the Credit Boom on the Soundness of Vietnamese Commercial Banks

2017 ◽  
Vol 8 (3) ◽  
pp. 57 ◽  
Author(s):  
Hao Thi Kim Do ◽  
Nguyet Thi Minh Nguyen ◽  
Trung Hai Le
Keyword(s):  
Commercial Banks ◽  
Quantitative Methods ◽  
Banking System ◽  
Commercial Banking ◽  
Capital Adequacy ◽  
Financial Reports ◽  
Qualitative And Quantitative Methods ◽  
Asset Quality ◽  
The Impact ◽  
Credit Boom

This paper concentrates on examining the impact of the credit boom (2007-2010) on the soundness of the commercial banking system in Vietnam by using qualitative and quantitative methods. The results show that the credit boom in the period 2007-2010 had made Vietnam's banking system face many uncertainties such as difficulties in liquidity, increased non-performing loans... The influence of the credit boom on Vietnam's banking system is assessed on basic aspects such as asset quality, profitability, liquidity, capital adequacy... The quantitative analysis of the impact is made through the regression model using variables that show the characteristic of individual commercial bank and the volatility of the economy. The data is collected from 18 commercial banks in Vietnam in the period from 2005 to 2013, taken from the database BankScope and supplemented by information from the annual financial reports of the banks. Finally, in order to avoid the possibility of credit booms in the future and their effects on bank soundness in Vietnam, some recommendations related to credit growth are proposed for the authorities and the commercial banks.

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 The impact of income diversification on liquidity creation and financial performance of Vietnamese Commercial Banks

Accounting ◽  
2020 ◽  
pp. 553-568
Author(s):  
Cuong Van Hoang ◽  
Loan Quynh Thi Nguyen ◽  
Manh Dung Tran ◽  
Tuan Dung Hoang
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Income Diversification ◽  
The Impact

scholarly journals How Does Suppliers’ Fairness Affect the Relationship Quality of Agricultural Product Supply Chains?

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yuling Sun ◽  
Zehua Liu ◽  
Hui Yang
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Procedural Fairness ◽  
Agricultural Product ◽  
Fairness Perception ◽  
Positive Effects ◽  
Distributive Fairness ◽  
Study Results ◽  
The Impact ◽  
The Relationship

Although many studies have suggested that the relationship between different supply chain members significantly affects agricultural product quality, suppliers’ perceptions of fairness, which greatly influence their decisions on building the relationship quality, are often overlooked. Particularly, the empirical evidence to investigate the impacts of suppliers’ fairness on the relationship quality and the factors that affect the suppliers’ fairness is missing, and therefore this knowledge gap needs to be filled by new research. Herein, we conducted a survey of 450 agricultural product suppliers and systemically analyzed the impact of antecedents on fairness perception and the impact of fairness perception on relationship quality. In addition, we developed a structural equation model and found that information sharing and price satisfaction had significantly positive effects on procedural fairness and distributive fairness, respectively. Furthermore, our studies demonstrated that procedural fairness is more important in improving the relationship quality than distributive fairness. However, supplier dependence is another important impact factor, and it greatly decreases the positive effects of suppliers’ fairness on relationship quality. In summary, the study results provide several managerial implications and extend our understanding of the importance of suppliers’ fairness in the relationship quality, which involves product development with respect to the supplier’s performance.

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