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Efficiency And Super-Efficiency Of Commercial Banks In Vietnam: Performances And Determinants

Author

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  • NGUYEN KHAC MINH

    (Water Resources University, Dong Da District, Hanoi, Vietnam)

  • GIANG THANH LONG

    (Institute of Public Policy and Management (IPPM), National Economics University (NEU), Hai Ba Trung District, Hanoi, Vietnam)

  • NGUYEN VIET HUNG

    (Faculty of Economics, National Economics University (NEU), Hai Ba Trung District, Hanoi, Vietnam)

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.

Suggested Citation

  • Nguyen Khac Minh & Giang Thanh Long & Nguyen Viet Hung, 2013. "Efficiency And Super-Efficiency Of Commercial Banks In Vietnam: Performances And Determinants," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 30(01), pages 1-19.
    • Handle: RePEc:wsi:apjorx:v:30:y:2013:i:01:n:s0217595912500479
    DOI: 10.1142/S0217595912500479
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    References listed on IDEAS

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    1. Matthias Staat & Maik Hammerschmidt, 2004. "A Super Efficiency Model for Product Evaluation," Microeconomics 0402011, University Library of Munich, Germany.
    2. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, November.
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    Citations

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    Cited by:

    1. Dang-Thanh Ngo, 2012. "Measuring the Performance of the Banking System Case of Vietnam (1990-2010)," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(2), pages 1-10.
    2. Chia Nan Wang & Anh Phuong Le, 2018. "Application in International Market Selection for the Export of Goods: A Case Study in Vietnam," Sustainability, MDPI, vol. 10(12), pages 1-24, December.
    3. Bakam Fotso & E. I Edoun, 2017. "Critical Assessment of Banking Institutions in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 6-21.
    4. Wanke, Peter & Tsionas, Mike G. & Chen, Zhongfei & Moreira Antunes, Jorge Junio, 2020. "Dynamic network DEA and SFA models for accounting and financial indicators with an analysis of super-efficiency in stochastic frontiers: An efficiency comparison in OECD banking," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 456-468.
    5. Emrah Önder & Ali Hepşen, 2013. "Combining Time Series Analysis and Multi Criteria Decision Making Techniques for Forecasting Financial Performance of Banks in Turkey," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(3), pages 530-530.
    6. Aziz Kutlar & Ali Kabasakal & Mehmet Sena Ekici, 2017. "Efficiency of commercial banks in Turkey and their comparison: application of DEA with Tobit analysis," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 10(1), pages 84-103.
    7. Tri Ho Thanh & Nga Vo Thi & Sipko Juraj, 2019. "Predicting overall Staffs’ Creativity and Innovative Work Behavior in Banking," Management & Marketing, Sciendo, vol. 14(2), pages 188-202, June.
    8. T. To D. & Т. То Д., 2016. "Реструктуризация банковской системы: пример Вьетнама // Restructuring the Banking System: the Case of Vietnam," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 4(4), pages 32-54.
    9. 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.
    10. Wasi Ul Hassan Shah & Gang Hao & Nan Zhu & Rizwana Yasmeen & Ihtsham Ul Haq Padda & Muhammad Abdul Kamal, 2022. "A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-17, April.
    11. Qiwei Xie & Linda L. Zhang & Haichao Shang & Ali Emrouznejad & Yongjun Li, 2021. "Evaluating performance of super-efficiency models in ranking efficient decision-making units based on Monte Carlo simulations," Annals of Operations Research, Springer, vol. 305(1), pages 273-323, October.

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