Efficiency and Super-Efficiency of Commercial Banks in Vietnam: Performances and Determinants

Abstract

This paper estimates and compares efficiency performance of 32 commercial banks in Vietnam during 2001–2005, as well as identifies possible factors determining such efficiency performance. Efficiency is measured by a data envelopment analysis (DEA) model and super-efficiency measure through a slacks-based model (SBM) under the assumption of variable returns to scale (VRS). We find that there were a small number of efficient banks, and there would be room for these banks to improve their production efficiency. Moreover, in comparison with small banks, large banks do not guarantee high super efficiency scores. The results from a Tobit regression model provide such interesting findings as negative impact of state ownership, positive influence of bank size and market share, but no impact of labor quality.

The Sustainability Performance of Chinese Banks: A New Network Data Envelopment Analysis Approach and Panel Regression

“…Following this line, the super-efficiency and slacks-based measures (SBM) were combined [33]. Subsequently, the super-efficiency model was used to evaluate bank efficiency [34][35][36].…”

“…Following this line, the super-efficiency and slacks-based measures (SBM) were combined [33]. Subsequently, the super-efficiency model was used to evaluate bank efficiency [34][35][36].To the best of the author's knowledge, several scholars considered combining the dynamic DEA and metafrontier analysis theory [37] but they did not take super-efficiency into account. Thus, the efficient DMUs could not be ranked and further distinguished.Undesirable outputs and the slacks-based measure.…”

Predicting overall Staffs’ Creativity and Innovative Work Behavior in Banking

“…Every sector has to change to adapt to the ups and downs of the economy. In Vietnam, it must be said that in recent years, the financial and banking sector has a considerable attraction in society; There was a "boom" in the banking and finance sector due to the huge social demand; There were career choices with the majority wanting to do banking; Resonance with the demand is the number of banks and branches, transaction locations are everywhere, demand for resources for the banking industry is quite large (Minh, Long, & Hung, 2013;Nham & Phan, 2015). However, there is a fact that when entering the industry.…”

“…The sales staff of the banking industry are required to deal directly with customers in order to bring revenue to the bank (Minh et al, 2013). The quality of human resources complying with the development of the banking sector in Vietnam is still low.…”

Efficiency of commercial banks in Turkey and their comparison: application of DEA with Tobit analysis

“…According to their findings large banks in the U.S. are definitely performing better and the result for the remaining Central and Eastern European countries depends on how DEA is designed. Minh et al (2013) make an estimation and comparison study on the efficiency of 32 Vietnamese commercial banks during 2001-2005 using DEA and Tobit regression under the assumption of variable returns to scale (VRS). They find that there are only a few efficient banks and even those banks need to improve their production efficiency.…”