The objective of this study is to analyze the technical efficiency of commercial banks operating in Vietnam, with an analysis of 30 out of 44 existing commercial banks. The author uses a parametric method with a Stochastic Frontier Analysis (SFA) with independent variables including equity, customer deposits, loans and total operating costs, and the dependent variable is total operating income. The results show that the mean technical efficiency of Vietnamese commercial banks in the research period is 0.728, the lowest efficiency is 0.692, the highest efficiency is 0.761. The technical efficiency of Vietnamese commercial banks in this period is low, the reason for the low efficiency of Vietnamese banks is that during this period, the Vietnamese banking system has just gone through a difficult period 2008-2012 and the Government of Vietnam restructured the banking system and credit institutions. Among commercial banks that are operating in weak cases, they are forced to restructure by mergers, acquisitions... this affects the overall average efficiency of the entire Vietnamese commercial banking system. The research results also show that the group of foreign banks has the highest average technical efficiency, with an average efficiency of 0.85. The group of state-owned commercial banks with average efficiency ranked second, this group having an average technical efficiency of 0.76. The group of private banks with the lowest average efficiency, this group has an average efficiency of 0.71. Foreign banks in Vietnam are subsidiary banks owned by major banking groups in the world such as HSBC, Shinhanbank, Standard Chartered.... These banks have advantages in capital, experience, and energy. governance, banking technology advantages... should have the highest operational efficiency. State-owned banks have a longer history of development than private banks, have capital from the state and have incentives from the government... so they are more effective than private banks. in Viet Nam.
This paper explores the efficiency of banks in 9 ASEAN countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam in the period of 2013 2017 by using a non-participation approach. Input-oriented DEA method, with the inputs being Equity; Deposits; Loans and Operating expenses with one output are the Total operating income. The results show that the average overall efficiency of ASEAN banks in the study period is 59.2%, with this result, if the output is constant, the banks can save up to 40.8% of the first. into the business process. Among ASEAN countries in the research period, banks in Indonesia, Cambodia and Thailand are among the most effective with the efficiency of 0.746 0.745 and 0.605. Banks in Vietnam, Malaysia and Brunei had the lowest average efficiency during the study period with average efficiency of 0.514, 0.538 and 0.544.
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