Abstract
This study was conducted to examine the impact of the State Bank’s monetary policy on the efficiency of Vietnamese commercial banks. Specifically, how do changes in refinancing interest rates and money supply affect the efficiency of commercial banks? The results of the study on a sample of 25 Vietnamese banks during the period 2009-2021 using the 2-step SGMM regression method show that the impact of refinancing interest rates and money supply on the bank efficiency is not consistent. While refinancing interest rates have a positive impact on bank efficiency measured by ROA and ROE, money supply only shows an impact on ROA. An increase in refinancing interest rates along with tightening money supply can bring advantages to banks in their operations and vice versa. Based on these research results, bank managers in Vietnam may prefer a high interest rate environment.
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