Abstract
This study has explored and measured the composition of social capital of leaders affecting the capital activities, capital use and service provision of Vietnam commercial banks. The research hypotheses are built on previous studies and developed through expert interviews. The research model uses a system of questions to build out 4 scales of social capital of bank leaders. Research results from 243 leaders of bank branches in Ho Chi Minh show that the social capital of bank leaders, expressed through their social relationships with subjects such as friends, colleagues, business partners and managers at all levels, is is very important to the operations of banks. Based on this finding, the social capital of bank leaders should be considered as an important resource to exploit and improve the business performance of the bank.
Highlights
The development of the financial market in general and the banking system of a country has a huge impact on the growth of this country (Phuong, 2016)
The objective of this study is to evaluate the impact of social capital of bank leaders on the operations of Vietnamese commercial banks in Ho Chi Minh City
Survey data set for directors and deputy directors of 32 banks in Ho Chi Minh City in 2016 was used for Exploratory Factor Analysis (EFA) analysis, confirmation factor analysis (CFA) and Regression of the Structural Equation Modeling (SEM)
Summary
The development of the financial market in general and the banking system of a country has a huge impact on the growth of this country (Phuong, 2016). In Vietnam, the proportion of state-owned commercial banks in 2015 continued to increase, accounting for 45.5% of the total mobilization of the whole system. There are many reasons for this phenomenon, in which there is a phenomenon that State-owned commercial banks often receive preferential capital from the government to lend subsidized economic sectors or under an economic stimulus program. Concessional capital funding the subsidized economic sectors is mainly implemented based on the functions, size, and network of banks, and according to the funding decisions of state management agencies. In addition to the fact that banks have to demonstrate their capabilities, the personal relationships of the bank leaders with the leaders of the state management agency are very important
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