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Banking, transition and financial reforms: a long-term analysis of Vietnam

Author

Listed:
  • Alessandra Ferrari

    (University of Loughborough)

  • Vo Huyen Trang Tran

    (University of Loughborough)

Abstract

We analyse the effectiveness of financial reforms in the transition economy of Vietnam, from the early years until the present day. Our focus is on the changes and the determinants of banks cost efficiency, which was widely criticised and was the focus of the reforms package. We find that regulatory changes impact favourably the development of the sector. Technological and efficiency improvements characterise the period of analysis, helped by better capitalisation and increased diversification. Any technological spillovers from foreign banks are quickly transferred to the domestic market, and larger domestic banks rapidly become the best performing institutions, in support of the more recent liberalisation and privatisation policies.

Suggested Citation

  • Alessandra Ferrari & Vo Huyen Trang Tran, 2021. "Banking, transition and financial reforms: a long-term analysis of Vietnam," Journal of Banking Regulation, Palgrave Macmillan, vol. 22(1), pages 1-10, March.
    • Handle: RePEc:pal:jbkreg:v:22:y:2021:i:1:d:10.1057_s41261-020-00123-3
    DOI: 10.1057/s41261-020-00123-3
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    More about this item

    Keywords

    Financial reforms; Transition economies; Vietnam banking sector; Banks efficiency; Stochastic frontier;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other

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