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http://dx.doi.org/10.13106/jafeb.2022.vol9.no7.0053

Data Envelopment Analysis on Measuring the Performance of Vietnamese Joint-Stock Commercial Banks  

NGO, Duc Tien (Faculty of Banking and Insurance, Academy of Finance)
PHUNG, Thu Ha (Faculty of Public Finance, Academy of Finance)
DINH, Tuan Minh (Institute of Science and Technology Strategy and Policy, Ministry of Science and Technology)
NGUYEN, Thuy Lien (Viet Analytics Joint Stock Company)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.7, 2022 , pp. 53-62 More about this Journal
Abstract
Commercial banks have a significant impact on the economy of Vietnam because they provide the majority of transactional capital. Therefore, the operational efficiency of commercial banks is a viral topic for the study of the Vietnamese banking system. The research aims to examine the efficiency and inefficiency of joint-stock commercial banks in Vietnam from 2016 to 2020 and then classify them into the efficient group and inefficient group. The study employs the time series data of 29 joint-stock commercial banks during the period 2016-2020. Based on the data collected from the annual audited financial statements of 29 Vietnamese joint-stock commercial banks, the authors select input and output variables for the standard DEA models and anti-efficient DEA models. This research uses two stages, first, by applying the standard DEA model, we investigate the efficient banks; second, by employing the anti-efficient DEA model, we find out the inefficient banks. The results reveal that the average efficiency score of 29 joint-stock commercial banks tends to increase in the period 2016-2018 and decrease gradually in the period 2019-2020. The findings of this study suggest that several small and medium-sized banks in the Vietnamese banking sector have both promising and risky performances and the efficiency of state-owned commercial banks has also improved significantly during the study period.
Keywords
Bank Performance; Efficiency; Anti-Efficient DEA; Standard DEA; Commercial Banks;
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