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 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 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 Long-run Effects of Market Risk Factors on Bank Performance in the SSA Banking System

2021 ◽  
Vol 17 (41) ◽  
pp. 130
Author(s):  
Changjun Zheng ◽  
Sinamenye Jean-Petit
Keyword(s):  
Risk Factors ◽  
Commercial Banks ◽  
Banking System ◽  
Market Risk ◽  
Sub Saharan Africa ◽  
Bank Performance ◽  
Performance Factors ◽  
Market Risks ◽  
Long Run

The study assesses the long-term effects of market risk factors on bank performance in the Sub-Saharan Africa banking system. The article identifies the most influential market risk factor and the most affected bank performance factors in the long term. It covers 40 countries with 350 commercial banks for ten years. The analysis uses dynamic fixed-effects models (ARDL-DFE). The results demonstrated that non-performing loans are the most influencers affecting bank performance factors in the long run. Furthermore, the results show that return on average assets is the most bank performance factor affected mainly by market risks, especially the NPLs in the long run. Finally, the findings surprisingly proved mutual interactions and cointegration movements among bank market risk factors and bank performance measures in the long run. These findings can assist central banks in supervising and regulating SSA commercial banks and inspire regional bank managers in reducing market risks and sharpening long-run performance strategies through resource reallocating.

Regional banking system in Russia: Trends and factors of spatial distribution

2017 ◽  
pp. 123-141 ◽  
Author(s):  
S. Ageeva ◽  
A. Mishura
Keyword(s):  
Spatial Distribution ◽  
Commercial Banks ◽  
Banking System ◽  
Federal District ◽  
Russian Regions ◽  
Siberian Federal District ◽  
Federal Districts ◽  
Banking Business ◽  
Banking Institutions

We examine the spatial distribution of banks in Russian regions to identify the factors that affect changing territorial architecture of the banking system. The object of the study is dynamics of the number of commercial banks and their branches in 1991-2016. Besides the well-known tendency of concentration of the banking business in Moscow and reducing the number of banks in other regions we analyzed situation in the federal districts taking as an example the Siberian Federal District. This approach allowed us to formulate hypotheses about the causes of differences in the availability of banking institutions in Russian regions.

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.

The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

A Study on Customer Satisfaction on Commercial Banks in Theni District

2018 ◽  
Vol 5 (2) ◽  
pp. 41
Author(s):  
G. Pooranam ◽  
K. Nandhini
Keyword(s):  
Customer Satisfaction ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking System ◽  
Modern State ◽  
Satisfaction Level ◽  
Important Place ◽  
Study Find ◽  
Modern Economy ◽  
Economic Objective

Banks play a very important role in the economic development of every modern state and country. Banks operate at the heart of the modern economy. Today’s Business is continually looking for ways to achieve a competitive advantage. Banks essentially are a social organization which rendering financial services to subserve socio-economic objective of the society. Banking system occupies an important place in nation’s economy. In this study, find out the customer satisfaction level of the Commercial banks in Theni District.

Risk-Relevance of Fair-Value Income Measures for Commercial Banks

2006 ◽  
Vol 81 (2) ◽  
pp. 337-375 ◽  
Author(s):  
Leslie D. Hodder ◽  
Patrick E. Hopkins ◽  
James M. Wahlen
Keyword(s):  
Standard Deviation ◽  
Stock Returns ◽  
Commercial Banks ◽  
Fair Value ◽  
Net Income ◽  
Income Volatility ◽  
Expected Return ◽  
Market Pricing ◽  
Share Prices ◽  
Comprehensive Income

We investigate the risk relevance of the standard deviation of three performance measures: net income, comprehensive income, and a constructed measure of full-fair-value income for a sample of 202 U.S. commercial banks from 1996 to 2004. We find that, for the average sample bank, the volatility of full-fair-value income is more than three times that of comprehensive income and more than five times that of net income. We find that the incremental volatility in full-fair-value income (beyond the volatility of net income and comprehensive income) is positively related to marketmodel beta, the standard deviation in stock returns, and long-term interest-rate beta. Further, we predict and find that the incremental volatility in full-fair-value income (1) negatively moderates the relation between abnormal earnings and banks' share prices and (2) positively affects the expected return implicit in bank share prices. Our findings suggest full-fair-value income volatility reflects elements of risk that are not captured by volatility in net income or comprehensive income, and relates more closely to capital-market pricing of that risk than either net-income volatility or comprehensiveincome volatility.

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

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