The turnover intention of internal controllers of Vietnamese commercial banks in the context of COVID-19

In the last decade, the rapid development of financial technology or FinTech, and the discourse of sustainable performance has become a concern in the banking and financial industry. These issues are considered and become a question, whether FinTech disrupts or supports the financial and banking industry. Based on these facts, this study will provide empirical evidence of whether FinTech interferes with, or with collaboration, and its impact on strengthening sustainable business performance. Research survey using questionnaires and data collection with convenience sampling techniques carried out for this quantitative research method. The results show that FinTech has a potential role in mediating between business drivers and sustainable business performance, especially in collaboration with the financial and banking industry in Indonesia. This research contribution can provide new paradigms and insights for researchers and practitioners who want to develop FinTech for sustainable business performance in the financial and banking industry in more depth.

Volatility in the financial market has increased the risks faced by commercial banks. These institutions require effective tools to assess the efficiency of their internal resources and projects. Implementing effective internal audit practices has become a strategic and urgent solution under current conditions. However, in reality, the internal audit function in commercial banks still faces confusion and a lack of both theoretical and practical experience. Improving the quality of financial statement audits in Vietnamese commercial banks is essential to ensuring transparency and accountability within the financial sector. High-quality financial statements allow investors, shareholders, and regulators to make well-informed decisions regarding the performance and stability of commercial banks, thereby contributing to the overall health of the economy. In Vietnam, the quality of financial audits is especially critical as the banking sector grapples with issues such as non-performing loans and weak corporate governance. These problems can erode public confidence in the financial system, reduce investment, slow economic growth, and even trigger financial crises. Moreover, with the growing complexity of financial transactions and the adoption of new technologies, auditors must continuously improve their skills and knowledge to ensure that financial statements are accurate and reliable. This is particularly important for commercial banks, which are subject to stringent regulatory and reporting requirements. By examining financial statements, detecting errors, providing recommendations on internal controls and financial reporting processes, and identifying potential risks, independent auditors ensure the accuracy and reliability of financial information. This enhances investor confidence, contributes to a more stable financial system, and helps maintain the integrity and transparency of financial markets. Therefore, enhancing the quality of financial audits in commercial banks carries both theoretical and practical significance.

It has become a common understanding among commercial banks to develop carbon finance.Carbon finance has provided opportunities for commercial banks to expand their business pipelines, stimulate finance innovation and fulfil social responsibilities.However, commercial banks are also facing problems like the lack of awareness of carbon finance business, the shortage of the talent due to credit domination and the high level of operational risk, and the deficiency of products and high level cost, which all make the development of carbon finance in commercial banks difficult.This article aims to provide relevant strategies in terms of establishing sustainable low-carbon development values and increasing the number of the talent; expanding the modes and areas of carbon finance business and innovating product types; taking precautions to control the risk of carbon finance business and reducing the cost of business.Currently, carbon finance has become a new field for competitions among global finance organisations.As a result, to enhance the innovation of carbon finance market mechanism becomes irresistible.China is a country with high energy consumption, high pollution and high emission.The current financial mode could not satisfy the great demand of capital from the low carbon economy and it has become imminent to study problems concerning the development of carbon finance in China's commercial banks in a deep and systematic manner.

Bank is the core of modern financial industry, and its development trend is related to the operation of the whole national economy.Bank efficiency and the level of bank performance are important factors affecting a country's economic security.Therefore, the performance of listed banks is the key issue of financial industry.In this paper, the performance level of 16 listed banks of China is analyzed with demonstration in the year of 2013.The paper evaluates the performance of listed banking business with factor analysis method by picking 11 indexes, and offers relevant countermeasures and suggestions.

This article studies the impact of internal control on the profitability of Vietnamese commercial banks. The influence of internal control on the profitability of commercial banks has been carried out by some researchers around the world. However, the research on the relationship between internal control and profitability of Vietnamese commercial banks is still limited. The article mentions the basic contents of internal control according to the Committee of Sponsoring Organization (COSO 2013) and, at the same time, determines the impact of internal control on the profitability of Vietnamese commercial banks. The research sample includes 30 Vietnamese commercial banks in the period 2007–2018, data is collected from audited financial statements and annual reports of banks, and macro data is collected from the General Statistics Office. The study uses return on total assets (ROA) and return on equity (ROE) to represent the profitability of commercial banks. By using the Gibbs sampling within the Bayesian approach, the research results show that there are five components of the COSO framework (2013) that affect the profitability of Vietnamese commercial banks, including: control environment, risk assessment, control activities, information and communication, monitoring activities. In addition, the study also shows that factors belonging to banking characteristics and macroeconomic factors affect the profitability of Vietnamese commercial banks: bank size, number of years of operation, inflation, GDP growth. The results of the study are the basis for making some recommendations to strengthen the internal control system of Vietnamese commercial banks to achieve more sustainable profitability.KeywordsCOSOCommercial bankInternal controlProfitability

Purpose- This paper aim to look at the relationship between service quality and customer satisfaction, and the impact of CSR on customer satisfaction, the impact of customer satisfaction on word-of-mouth, the impact of customer satisfaction on loyalty intention. This paper also compares the effect of service quality across different types of commercial banks, including state-owned commercial banks and city commercial banks, using SERVQUAL model. Design/methodology/approach- The sample is made up 368 bank customers, 196 from stated-owned commercial banks and 172 from city commercial banks from different cities of Guangxi, China. The data have been collected using the structured questionnaire. T-test, F-test, Crosstab analysis and multiple regression be used for analyzing data. Findings- The result shows that perceived service quality is positively related to customer satisfaction, the results reveal that the responsiveness, assurance and empathy have highest impact on customer satisfaction. There is a significantly different perception of service quality between state-owned commercial banks and city commercial banks. Customers of city commercial banks has higher perceived service quality. On the other hand, this paper finds that older people of respondents are more satisfaction and more loyalty then younger respondents. This study also finds that CSR is positively related to customer satisfaction, customer satisfaction is positively related to word-of-mouth, customer satisfaction is positively is positively related to loyalty intention. Originality/value- First, this paper conducts a survey of commercial banks in China banking industry, and analyses the difference in perceived service quality between state-owned commercial banking and city commercial banking. It could be very useful from the managing marketing perspective in increase bank competitiveness. Second, this paper examines Chinese commercial banking service quality and the effects of every factors on customer satisfaction by quantitative analysis method. The result is helpful for improving customer satisfaction and preventing customer defections. Final, this paper the investigates level of CSR activity, customer satisfaction, word-of-mouth and loyalty intention, by studying customers’ behavior. The results could provide a suitable direction in order to meet customers’ demand trend.

Purpose - This study examines the impact of deposit mobilization quality on individual customer satisfaction in Vietnamese commercial banks. Design/methodology/approach - The study was undertaken to utilize a survey, and data were collected from 318 individual customers who had deposited money in commercial banks. These banks represent a substantial portion (over 80%) of the total scale of capital mobilization within the Vietnamese commercial banking sector. The study employed exploratory factor analysis (EFA) and multiple linear regression analysis (MRA) to analyze the data. Findings - The findings indicate that determinants such as Customer Reliability, Infrastructure, Empathy, Assurance, and Responsiveness influence the level of individual customer satisfaction in Vietnamese commercial banks, which serve as a crucial foundation for suggesting strategies to enhance the overall contentment of customers who deposit with commercial banks in Vietnam. Research limitations/Implications - The study was only conducted on 318 individual customers (valid responses). To obtain a more thorough understanding of customers’ satisfaction with capital mobilization services at Vietnamese commercial banks, it is imperative to broaden the scope of this research by incorporating a larger sample size and diversifying customer groupings. The study has made certain contributions to identifying solutions for enhancing the satisfaction of individual deposit customers at Vietnamese commercial banks. Originality/value - The study has provided empirical evidence on the relationship between the quality of deposit mobilization and customer satisfaction at commercial banks in Vietnam.

Through providing credit to businesses and people, the banking industry has created positive changes for society, which has a great impact on the sustainable development of production and business activities. Therefore, when banks not only pursue economic goals, but also pay attention to social and environmental issues, the impact of the banking industry on the economy and society will be more comprehensive and humane. The article presents the current status of social responsibility (CSR) of commercial banks in Vietnam, thereby recommending some solutions for commercial banks and State management agencies in implementing the social responsibility.

Foreign ownership of banks in Vietnam refers to the participation and ownership of banks by foreign entities in the country's financial sector. Over the years, Vietnam has gradually opened up its banking industry to foreign investors as part of its broader economic reforms and efforts to integrate with the global economy. Foreign ownership of banks in Vietnam was initially restricted, but the government has implemented various measures to encourage foreign investment in the sector. This balanced approach aims to harness the benefits of foreign ownership while safeguarding financial stability and the interests of the domestic economy. Therefore, it may make the banks more risky and perform the study on the relationship between foreign ownership and bank risk taking become more important. The objective of this study is to examine the influence of foreign ownership on the risks faced by commercial banks in Vietnam. By analyzing data collected from a survey conducted between 2010 and 2020, involving 28 commercial banks in Vietnam, the empirical findings demonstrate that foreign ownership in Vietnamese commercial banks is associated with a reduction in risks. Additionally, the research reveals that lower risks experienced by Vietnamese commercial banks in the past are correlated with lower risks in the present. These findings contribute to the ongoing discourse surrounding foreign ownership in Vietnamese commercial banks, emphasizing the need for policymakers to prioritize the effectiveness of joint-stock foreign ownership.

This study aims to evaluate the impact of the COVID-19 pandemic on the business efficiency of 15 listed commercial banks in Vietnam, from 2016–2023. We use qualitative analysis methods and T-test models in SPSS software to compare the efficiency of indicators before and after COVID-19. Research results have shown that the operating picture of the banking industry has a rare bright spot when the business efficiency of the entire banking industry has grown, in which state-owned commercial banks have a significant gap with the group of private commercial banks, thanks to better total asset size and risk buffer. The authors find that the Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) is the state-owned bank with the most stable and best performance in the research sample and observation period, while the Military Commercial Joint Stock Bank (MBB) is the best private bank. In the post-COVID-19 period, from 2021–2023, the business performance of commercial banks in Vietnam has grown in return on equity (ROE), net interest income (NII), and profit after tax (PAT). At the same time, capital adequacy ratio (CAR) has no difference, showing that the financial safety level of commercial banks remains stable. Thereby, the authors propose four solutions to commercial banks and recommend four policy implications to the management agency.

Credit is considered a crucial activity of commercial banks; it accounts for the most significant proportion of the bank's total assets and is also an activity that carries great risks. The study uses OLS, FEM, REM, and FGLS to assess the factors affecting loan loss provisions (LLPs) of 20 Vietnamese commercial banks during the Covid-19 pandemic from Q1/2020 to Q4/2021. The result of the model is based on FGLS to overcome the phenomenon of heteroscedasticity after using estimation by OLS, FEM, REM, showing that the factors affecting LLP of Vietnamese commercial banks during the Covid pandemic include: bank size (SIZE), non-performing loans ratio (NPL), a ratio of pre-tax profit and provision to total assets (CROA), loans to total assets ratio (LOAN), and credit growth (ΔCREDIT). Research results using the FGLS method show that bank size, bad debt ratio, pre-tax profit ratio and provision to total assets and credit growth positively impact the LLP of the Vietnamese commercial banks in the Covid pandemic. However, interestingly, the percentage of loans to total assets can decrease the provision for loan losses. Thereby, the study proposes some policy implications as follows: The SBV needs to have the policy to limit credit growth and bad debt ratio for commercial banks to control the competition for a market share of loans without ensuring the quality of loans, leading to an increase in credit risk and LLP. Furthermore, each Vietnamese commercial bank needs to develop and apply a practical and comprehensive credit process to ensure debt recovery to avoid a lot of bad debts. For new customers, banks need to fully assess all aspects to predict the level of risk before deciding to provide loans. Additionally, the long-term effects of Covid-19 cause difficulties for commercial banks' activities, SBV needs to consider supportive policies through interest rate reduction, grace period, and debt extension to increase financial performance and maintain market share and profits of commercial banks.

This study investigates the determinants affecting new customers’ intention to use bank cards, as well as the factors shaping the loyalty of existing cardholders, within the dynamic context of ongoing digital transformation at Vietnamese commercial banks. A survey of 220 respondents using an online questionnaire in 2023, investigated customers of Asia Commercial Bank, one of the largest, most reputable, and long standing commercial banks in Viet Nam. An integrated research model combining the Theory of Planned Behavior, Technology Acceptance Model, and the SERVPERF service quality framework was developed and analyzed using Partial Least Squares Structural Equation Modeling. The findings highlight the critical role of service quality and perceived usefulness in driving card adoption and usage. By addressing both pre-adoption and post-adoption behaviors, the research provides a comprehensive perspective on the drivers of card usage and sustained customer engagement amid the sector’s technological evolution. These insights offer practical guidance for commercial banks in Vietnam to improve their card service features and marketing strategies, thereby enhancing customer satisfaction and loyalty.

The article aims to understand the impact of The Vietnam –EUfree trade agreement (EVFTA) on the operations of the Vietnamese banking industry. Through the collection of agreement-related documents related to the banking sector and the actual operations of Vietnamese banks, the article employs a qualitative research methodology to identify opportunities and challenges. To assess the banking industry’s ability to access and take advantage of the agreement, the study surveyed 152 leaders from thirty-six Vietnamese commercial banks. The results show that when the agreement takes effect, Vietnamese commercial banks have the opportunity to attract investors from Europe, improve risk management capacity, diversify services, promote digital transformation, bancassurance, and diversify bank income. Besides, this agreement also brings many challenges to banks such as increased costs, competition, risks, conflict of interest, requires high quality human resources. The findings also highlight barriers to the agreement’s commitments in the areas of core banking, administrative capacity, and infrastructure system network. The article then offers strategies Vietnamese commercial banks can use to improve the effectiveness of their operations.

This study adopt fixed assets, SG&A (selling, general and administrative expenses) and interest expenses as input factors, use the amounts of loans and revenues as output factors, and employ Data Envelopment Analysis (DEA) to evaluate the efficiency performance and relative efficiency of commercial banks according to Farrell’s efficiency evaluation theory. We group all sample commercial banks into three categories, namely “Old Commercial Banks”, “New Commercial Banks” and “Commercial Banks Upgraded from Credit Cooperatives” and evaluate the efficiency of commercial banks, including overall efficiency, overall technical efficiency, pure technical efficiency, scale efficiency, and allocation efficiency. The empirical results find that the “Old Commercial Banks” possess highest efficiency value than the other two groups. Besides, the “Old Commercial Banks” also have the highest overall technical efficiency, pure technical efficiency and allocative efficiency. It implies that the “Old Commercial Banks” is doing well in competing with the new entrants, which makes them keep better efficiency than both the “New Commercial Banks” and the “Commercial Banks Upgraded from Credit Cooperatives”.

With the arrival of the Internet big data era, the digital economy has become one of the important foundations of China’s economic and social development, and the rapid development of digital currency is the basic driving force and important symbol of the current Internet big data era. With the continuous transformation of the digital currency background, finance has become a modern economic system, both domestic and foreign, the competition in the financial industry is also gradually intense, and the innovation of the digital currency background has become the main direction of the development of modern China’s financial industry. In 2020, China’s central bank digital currency began to carry out pilot work in Shenzhen, Suzhou, Xiong’an New Area and Chengdu, China became the world’s first country to issue sovereign digital currency in the world. The issuance of the central bank’s digital currency will bring new opportunities and challenges to the domestic banking industry. The issuance of central bank digital currency will bring great challenges to the traditional business model of commercial banks, and at the same time, it will increase the competition among commercial banks and bring more pressure as well as new risks to the financial infrastructure of commercial banks. Therefore, commercial banks should adjust their business model, strengthen the cooperation among the banking industry, avoid vicious competition among banks, strengthen the financial infrastructure of commercial banks, and improve the risk prevention and control level of commercial banks comprehensively.