Bank-Specific Determinants of Loan Growth in Vietnam: Evidence from the CAMELS Approach

Nguyen, Hoang Dieu Hien; Dang, Van Dan

doi:10.13106/jafeb.2020.vol7.no9.179

Cited by 16 publications

(17 citation statements)

References 41 publications

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“…Its wide application is a result of the simplicity that comes with its calculation. According to Nguyen and Dang (2020), this model is the most popular approach approved by regulators in the banking sector who have a keen interest in estimating efficiency.…”

Section: The Camel Approachmentioning

confidence: 99%

Exploring the impact of Corporate Social Responsibility on the Financial Performance of Rural and Community Banks in Ghana

Anim¹,

Amaning²,

Quartey³

et al. 2021

IBR

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The interest of Rural and Community Banks (RCBs) in CSR activities which include education and leadership development, Health, Community development are geared towards ensuring the wellbeing of community members. This means that CRS is key to the success of RCBs. Based on the above reasons the study attempts to examine the influence of CSR on the financial performance of selected Ghanaian Rural and Community Banks. RCBs sampled for this study were fifteen (15) from the Kumasi Metropolis in Ghana using annual reports for a six-year-period from 2012 to 2017. Regression analysis was employed to measure the effect of CSR, financial indicators, bank age, and size of the board of directors using the Data Envelope Technique on the performance of the RCBs. Findings showed that technical efficiency and productivity were low in some RCBs over the six-year-period. The results also showed that technical change, technological change, and Total Factor Productivity affected performance. However, the size of the board of directors was inversely related to the performance of RCBs. There is therefore the need for RCBs to improve input savings and also ensure an efficient allocation of monetary resources to corporate social responsibility activities as a way of enhancing their overall productivity. Not much has been written about the impact of CSR on the financial performance of RCBs in Africa. This study thus is among the first significant attempts to explore the impacts of CSR on the financial performance of RCBs in Africa.

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Section: The Camel Approachmentioning

confidence: 99%

Exploring the impact of Corporate Social Responsibility on the Financial Performance of Rural and Community Banks in Ghana

Anim¹,

Amaning²,

Quartey³

et al. 2021

IBR

View full text Add to dashboard Cite

show abstract

“…The less efficiently managed banks may adopt a strong lending strategy, and the more profitable banks have the potential to expand their lending activities to a greater extent. Conversely, the perceived interest rate risks led to holding back loan growth for banks' sensitivity to interest rate changes (Nguyen & Dang, 2020). Kumar et al (2020) tested the efficiency of the Indian private banking sector using the DEA approach from 2005-2017.…”

Section: Literature Reviewmentioning

confidence: 99%

How Banks’ Resources at the Retail Level Affect Their Output?

Alothman¹,

Al-Mahish²

2020

JAFEB

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The study aims to measure the productivity of the Saudi banking sector at the retail level using secondary data for 11 local banks from the period 2015-2019. The study uses an extended version of the Cobb-Douglas production function to account for the fact that as banks openup more retail branches, they will need to employ more labor. The extended Cobb-Douglas production function was estimated using the two-way fixed effect model to account for unobserved heterogeneity across Saudi banks resulting from differences in labor competencies and leadership style. Besides, the model accounts for unobserved heterogeneity among Saudi banks due to the advancement in electronic services over time. The results showed that labor, branches, customers' deposits, and fixed deposits have a positive effect on the total value of generated loans. Conversely, ATM has an insignificant effect on generated loans. The average scale elasticity shows that the Saudi banks at the retail level are operating under decreasing returns to scale. The average marginal rate of technical substitution shows that Saudi banks need at least one ATM to replace one unit of labor at the retail level while keeping the same level of output.

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“…The Government conducted the expansionary monetary policy to foster its economy and lending regulations were eased to support credit growth (Nguyen and Dang, 2020). Consequently, the volume of credit surged by 35% annually on an average from 2007 to 2011.…”

Section: Vietnamese Banking Sector In the Time Of Restructuring (2011mentioning

confidence: 99%

An Analysis of Vietnamese Bank Productivity Change in the Time of Restructuring

To¹,

Le²

2020

JAFEB

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Commercial banks play an important role as the main source of funding in the transition process of Vietnam as a market economy. As a result, enhancing the efficiency and productivity of Vietnamese banks can decrease the lending cost for individuals and enterprises. This study is to measure and analyze the productivity change of Vietnamese banking system in different ownership cohorts and sources of this change during the period of restructuring (2011-2019). The Hicks-Moorsteen total factor productivity index is utilised to measure the productivity change and to identify the sources of this change. For an empirical analysis, the data of 28 Vietnamese commercial banks from 2011 to 2018 is collected from their financial statements including balance sheets and income statements. The results show an increase of Vietnamese bank productivity due to the technological progress. While foreign and joint-venture banks are the most advanced cohort, stateowned banks have the lowest rate of productivity growth. The restructuring program negatively impacts scale efficiency and this measure attributes to a decline in the overall efficiency of the banks. We also found that state-owned commercial banks are the most efficient group in the sense that they can achieve the maximal level of revenue from a given amount of expense.

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Bank-Specific Determinants of Loan Growth in Vietnam: Evidence from the CAMELS Approach

Cited by 16 publications

References 41 publications

Exploring the impact of Corporate Social Responsibility on the Financial Performance of Rural and Community Banks in Ghana

Exploring the impact of Corporate Social Responsibility on the Financial Performance of Rural and Community Banks in Ghana

How Banks’ Resources at the Retail Level Affect Their Output?

An Analysis of Vietnamese Bank Productivity Change in the Time of Restructuring

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