The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach

This study examines the effects of foreign banks entry on the efficiency of domestic banks in Vietnam following the program of financial deregulation initiated by the government. We also review the bank efficiency in term of bank size and ownership structure. There are two main approaches to assess...

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Tác giả chính: Long P.D.
Đồng tác giả: Hoang L.C.
Định dạng: Chương sách
Ngôn ngữ:English
Thông tin xuất bản: Springer Verlag 2021
Chủ đề:
SFA
Truy cập trực tuyến:http://digital.lib.ueh.edu.vn/handle/UEH/62324
https://doi.org/10.1007/978-3-319-73150-6_57
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spelling oai:localhost:UEH-623242021-09-05T07:41:27Z The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach Long P.D. Hoang L.C. Bank efficiency Financial deregulation Foreign banks entry SFA This study examines the effects of foreign banks entry on the efficiency of domestic banks in Vietnam following the program of financial deregulation initiated by the government. We also review the bank efficiency in term of bank size and ownership structure. There are two main approaches to assess the efficiency of a bank: data envelopment analysis (DEA) and stochastic frontier analysis (SFA). In this paper, we apply the SFA method which is suggested by Berger et al. (2009), Ahn et al. (2001) to estimate the cost and profit efficiency of three groups: 100% foreign-owned, big four state-owned and other domestic banks. Based on the initial sample which is collected from the BankScope database of Bureau van Dijk and Fitch Ratings and annual reports of 37 banks in Vietnam for the period 2009–2015. Results indicate that big four state-owned banks are seemly efficiency on both cost and profit approach while the 100% foreign-owned banks are not the most efficiency overall. However, the 100% foreign-owned banks are able to gain economy of scale in revenue while the big four state-owned and other domestic banks hardly take an advantage of economic of scale. All group of bank obtain the economy of scope but the level is different. Other domestic banks may exploit economy of scope greater than big four and foreign banks. 2021-09-05T07:41:27Z 2021-09-05T07:41:27Z 2018 Book Chapter 9783319731506 http://digital.lib.ueh.edu.vn/handle/UEH/62324 https://doi.org/10.1007/978-3-319-73150-6_57 en Econometrics for Financial Applications. ECONVN 2018. Studies in Computational Intelligence Vol. 760 none Portable Document Format (PDF) 727 743 Springer Verlag
institution Đại học Kinh tế Thành phố Hồ Chí Minh
collection DSpaceUEH
language English
topic Bank efficiency
Financial deregulation
Foreign banks entry
SFA
spellingShingle Bank efficiency
Financial deregulation
Foreign banks entry
SFA
Long P.D.
The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach
description This study examines the effects of foreign banks entry on the efficiency of domestic banks in Vietnam following the program of financial deregulation initiated by the government. We also review the bank efficiency in term of bank size and ownership structure. There are two main approaches to assess the efficiency of a bank: data envelopment analysis (DEA) and stochastic frontier analysis (SFA). In this paper, we apply the SFA method which is suggested by Berger et al. (2009), Ahn et al. (2001) to estimate the cost and profit efficiency of three groups: 100% foreign-owned, big four state-owned and other domestic banks. Based on the initial sample which is collected from the BankScope database of Bureau van Dijk and Fitch Ratings and annual reports of 37 banks in Vietnam for the period 2009–2015. Results indicate that big four state-owned banks are seemly efficiency on both cost and profit approach while the 100% foreign-owned banks are not the most efficiency overall. However, the 100% foreign-owned banks are able to gain economy of scale in revenue while the big four state-owned and other domestic banks hardly take an advantage of economic of scale. All group of bank obtain the economy of scope but the level is different. Other domestic banks may exploit economy of scope greater than big four and foreign banks.
author2 Hoang L.C.
author_facet Hoang L.C.
Long P.D.
format Book Chapter
author Long P.D.
author_sort Long P.D.
title The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach
title_short The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach
title_full The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach
title_fullStr The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach
title_full_unstemmed The effects of foreign bank entry, deregulation on bank efficiency in Vietnam: Stochastic frontier analysis approach
title_sort effects of foreign bank entry, deregulation on bank efficiency in vietnam: stochastic frontier analysis approach
publisher Springer Verlag
publishDate 2021
url http://digital.lib.ueh.edu.vn/handle/UEH/62324
https://doi.org/10.1007/978-3-319-73150-6_57
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