Banks In Vietnam Research Articles

CEO characteristics and bank stability: Evidence from an emerging economy

AbstractThis paper investigates the effect of CEO characteristics on bank stability of commercial banks in Vietnam. The study used regression models Pooled OLS, Fixed effects Model (FEM), random effects model (REM), and Feasible Generalized Least Square (FGLS) to evaluate the relationship between CEO characteristics and bank stability of 26 commercial banks in Vietnam. To deal with the limitations of traditional regression methods, we propose Bayesian regression method. The data collection period in the study is from 2013 to 2022. In these regression models, CEO power, female CEO, CEO tenure, and CEO age are independent variables. The dependent variable representing bank stability is the Z‐score. The research results show that the factors CEO power, female CEO, CEO tenure, CEO age have a positive impact on bank stability in Vietnam.

The Impact of FinTech on Retail Banking: Empirical Evidence from Bank for Investment and Development of Vietnam

This paper is aimed at (i) synthesizing the impacts of FinTech on retail banking; (ii) analyzing the Vietnam FinTech and retail banking sector (iii) assessing the impacts of FinTech on retail banking of Bank for Investment and Development of Vietnam (BIDV) – the biggest bank in Vietnam in term of asset with strong digital transformation and retail banking orientation. Using secondary data and internal information of BIDV, key findings are: First, the impacts of FinTech on retail banking are mixed. FinTech's growth has promoted banking services by enhancing the flexibility and usability of financial services with lower costs and more efficient risk management. FinTech also brought various negative impacts on retail banking such as being the direct competitor in some retail market segments, cybercrime, and strategic and credit risks to banks. However, the positive impacts surpass the negative impacts. Second, Vietnam's FinTech ecosystem and retail banking sector have been significantly developed and still have much potential. Both banks and FinTechs in Vietnam realize the win-win approach in cooperation, but banks still recognize the challenges of FinTech in their retail banking operations. Third, at BIDV, the impacts of FinTech on retail banking are significantly positive, resulting from motivation to strengthen digital transformation, to utilize technologies and collaboration for higher quality services. FinTech helps BIDV to increase customers and transaction volumes, diversify products with innovative solutions and better service quality, safe transactions with cost savings. No negative impacts of FinTech on retail banking have been found at BIDV yet. Fourth, BIDV, State Bank of Vietnam (SBV) and other stakeholders should implement some solutions for better FinTech utilization in improving retail banking services and to mitigate the negative impacts in the future. Keywords: digital transformation, FinTech, financial innovation, financial services, retail banking.

Nghiên cứu thực nghiệm các yếu tố tác động đến rủi ro phá sản của ngân hàng thương mại cổ phần tại Việt Nam

The research aims to identify the factors affecting the bankruptcy risk of the joint-stock commercial banks (JSCB) in Vietnam in the period 2010-2021. The research uses regression methods for panel data with a sample of 30 commercial banks, using secondary data collected from audited financial statements of banks. Through the system GMM (SGMM) method for panel data, the results show the operating expenses (OE), inflation (INF) have the impact on the bankruptcy risk. In addition, the combining research results after the robustness check of R language and SGMM also show that the size of commercial banks (SIZE) and return on assets (ROA) have an opposite impact on the risk of bankruptcy. These suggest important policy implications for commercial banks in Vietnam in controlling bankruptcy risks, ensuring to curb the uncertainty of the commercial banks in Vietnam.

Analyze the impact of factors on Vietnam banks’ net interest margin: A panel data approach

This study deals with the impact of Vietnam bank size, loans, credit risk, and liquidity on Vietnam banks’ net interest margin, which are crucial for economic development. High profit margins result in a lower bad debt ratio due to timely loan collection and good liquidity. This study applies a panel data model to evaluate the relationship among bank size, loans, credit risk, liquidity, and marginal profitability, which are increasingly important in commercial bank growth. Data were collected from 2010 to 2022, and test methods were applied to select a good-fit model. Realizing that the factors that have a close correlation and affect the profit margin are 33.6% and 16.07%, 75.2%, 37.51%, 64.30%, and 41.11%, and R2 is 59.04%, respectively, this suggests that financial managers need to develop appropriate strategies and policies to adjust the factors that adversely affect commercial bank profitability.

The impact of institutional pressures on corporate social responsibility and green marketing adoption: an empirical approach in Vietnam banking industry

PurposeInstitutional pressure and corporate social responsibility (CSR) are gaining increasing recognition in scholarly works; however, there is an apparent and unsettled relationship between these concepts and the concept of green marketing adoption (GMA) that influences efforts to gain a relative competitive advantage (RCA). This study is aimed at examining the roles of institutional pressure and CSR on GMA and RCA and proposes recommendations for promoting green marketing management and CSC in the banking industry in Vietnam.Design/methodology/approachIn this study, partial least squares structural equation modeling is utilized to investigate the evolution of the structural model, while the hypotheses are evaluated using structural equation modeling (SEM). The data are scrutinized from 288 banking employees through an online survey.FindingsThe results show that the components of institutional pressure exert a significant impact on GMA and RCA, but the level and type of this impact differ. Additionally, the mediating role of the CSR variable in this relationship is revealed. Under the influence of institutional pressure, companies tend to increase their implementation of CSR activities, thereby promoting their GMA and RCA.Originality/valueThis study offers both theoretical and practical implications. Theoretically, this study adds to the extant evidence concerning the significance of CSR integration and institutional pressure to the advancement of GMA. In addition, maintaining a focus on fostering holistic GMA practices has enabled the banking industry in Vietnam to achieve an RCA.

Factors Impact on Financial Performance in Big 4 Banks in Vietnam: The Role of Corporate Social Responsibility Disclosure

Multiple factors have contributed to the burgeoning emphasis on Corporate Social Responsibility (CSR) within the Vietnamese banking sector. There is a burgeoning consciousness among consumers and stakeholders regarding the significance of sustainable and ethical business practices. With increasing social awareness, customers are progressively opting to support businesses that are dedicated to CSR. Moreover, regulatory entities in Vietnam have initiated measures to encourage CSR practices among banks. This study underscores the profound impact of CSR on the financial performance of the banking sector. The authors developed hypotheses to find out the determinants of the financial performance of Big 4 banks in Vietnam by collecting secondary data in the 2017-2022 period. To answer this question, the Person test, Pool OLS, FEM, REM and FGLS models were used, and then the Hausman test, Wald test and Wooldridge test were used to test the suitable model. The research showed that financial performance in the Big 4 banks in Vietnam (Vietcombank, BIDV, VietinBank, and Agribank) was negatively impacted by capital ratio and financial leverage and positively and significantly influenced by corporate social responsibility and overhead expenses. Thus, by integrating CSR initiatives into their business strategies, banks can enhance their reputation, attract socially conscious customers, and improve return on assets (ROA). Overhead expenses are another key factor significantly impacting a bank's ROA. The Big 4 banks should focus on optimizing their cost structure by identifying and eliminating inefficiencies in their operations. Implementing digitalization initiatives, streamlining processes, and investing in technology can reduce overhead expenses and improve operational efficiency. From these results, the paper gave recommendations for banks to improve their financial performance.

Customer Perceptions of CSR and Customer Loyalty Towards Digital Banking in Vietnam - Mediating Role of Customer Satisfaction

Customer Perceptions of CSR and Customer Loyalty Towards Digital Banking in Vietnam - Mediating Role of Customer Satisfaction

Does COVID-19 affect non-performing loans at commercial banks in Vietnam

Does COVID-19 affect non-performing loans at commercial banks in Vietnam

Ngân hàng với tăng trưởng xanh: Kinh nghiệm quốc tế- định hướng cho BIDV và gợi ý cho ngân hàng thương mại Việt Nam

In the context of climate change and environmental pollution becoming increasingly serious due to human economic activities, green growth has recently become a topic that has received a lot of attention from both policymakers and scientists. In recent years, the Government has proactively introduced many policies and legal documents aimed at applying climate change according to commitments in the 2021 United Nations Framework Convention on Climate Change (COP26) on reducing net emissions to zero by 2050, reducing greenhouse gas emissions by 30% by 2030. In particular, the banking sector is considered to have an extremely important role in promoting green growth, towards a sustainable and environmentally friendly economy. This paper presents the theoretical basis of green growth and the role of the banking system in green growth as well as highlights international experiences from Germany and China on green growth in the banking sector. On that basis, this paper proposes some orientations for the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) in particular and commercial banks in Vietnam in general to contribute to promoting green growth and sustainable finance in Vietnam

Determinants of Bank Stability in Emerging Economies: Empirical Evidence From Vietnam

The thesis explores the main factors affecting the financial stability of commercial banks in Vietnam. It utilizes annual panel data from 27 banks listed on the Vietnamese Stock Exchange, covering the period from 2009 to 2023. Findings reveal that factors such as the equity-to-asset ratio (ETA), bank size (SIZE), return on equity (ROE), and ownership structure (OWN) positively correlate with financial stability, whereas non- performing loans (NPL) negatively affect it. The impact of net interest margin (NIM) and loan-to-deposit ratio (LDR) on stability remains inconclusive. Among macroeconomic factors, the inflation rate (INF) positively influences financial stability, while GDP growth (GDP) does not have a significant effect. Additionally, COVID-19 variables showed no significant association with financial stability.

Early Warning System for Debt Group Migration: The Case of One Commercial Bank in Vietnam

Abstract This study utilizes machine learning models, including Logistic Regression, Support Vector Machine, Decision Tree, and Random Forest, in the early warning system for debt group migration in a Vietnamese commercial bank. In predicting customers’ overdue debt migration (B Score), the RF model achieves the highest accuracy of 81.84%. However, if the priority is to reduce Type I errors, SVM performs better with a recall of 91.48%, although the accuracy drops to 46.62%. When predicting customers’ debt group improvement (C Score), SVM proves to be the optimal model in terms of both accuracy and criteria based on Type II errors, with an accuracy of 71.6% and precision of 62.3%. When applied to new datasets, the evaluation criteria decrease, but SVM remains the most optimal model for both B Score and C Score. Additionally, the research results demonstrate that tuning the model parameters leads to a significant improvement in accuracy compared to the default parameters.

FACTORS AFFECTING CREDIT RISK FOR INDIVIDUAL CUSTOMERS AT VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT, BINH THANH BRANCH, HO CHI MINH CITY

The main objective of the study is to determine the factors affecting credit risk for individual customers at Vietnam Bank for Agriculture and Rural Development, Binh Thanh Branch, HCMC. In order to achieve the research objectives, the author used comparative and absolute numerical analysis methods; Descriptive statistics method; Probit regression method to identify factors affecting credit risk. The research results show that of 09 independent variables included in the research model, 05 variables correlated with the dependent variable which is the borrower's financial ability (X1); Industry (X3); Checking and supervising loan debts (X4); Experience of credit officer (X5); Number of dependents (X8). In particular, the variable that is positively correlated with the dependent variable is the number of dependents; The borrower's industry variable is the one that has the strongest impact on the dependent variable, followed by the borrower's financial ability. Based on the research results, the author proposes a number of solutions to improve credit efficiency for Vietnam Bank for Agriculture and Rural Development, Binh Thanh Branch as follows: Selection of credit officers experienced; Assess the number of dependents; Credit officers enhance inspection and supervision of loans; Increasing the financial security of borrowers; Focus on the main business that generates the income of customers when reviewing loan applications.

Improving employee job satisfaction: The case of commercial banks strategy

The objective is to find out the factors that affect the job satisfaction of employees at commercial banks in the Mekong Delta by collecting preliminary data from 260 employees at six commercial banks in the Mekong Delta: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Asia Commercial Joint Stock Bank (ACB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Vietnam Bank for Agriculture and Rural Development (Agribank) according to the random sampling method. The authors inherited the research of Smith et al. (1969), Luddy (2005) and Kim Dung (2005) at the same time, applying multivariate regression models for this study. Research results have found five factors that affect job satisfaction: working conditions, salary and benefits, leadership concerns, relationships with colleagues and training and advancement opportunities. From the research results, the authors have proposed solutions to further improve the job satisfaction of employees at commercial banks in the Mekong Delta, thereby contributing to improving the business efficiency of the Mekong Delta commercial bank system in the coming time.

Impact of Monitoring Activities and Social Ties on the Repayment Problems of group-Based Lending-Evidence from Vietnam

This study examines how monitoring activities by group leaders and social ties within groups influence repayment rates in the Vietnam Bank for Social Policy’s group lending program in the Mekong Delta. Data used in this paper was obtained from a survey of 675 members from lending groups in 5 provinces in the Mekong Delta in September 2022. The analysis finds a negative relationship between the leader’s social ties and repayment rates, implying that strong social ties might hinder enforcement. However, the impact of leader monitoring, member-level monitoring, and social ties was not statistically significant. Interestingly, group characteristics like size and regulations may play a more significant role in reducing repayment problems.

Current Waste Management in Banks from 11 Asian Countries vs Sberbank ESG Reporting

The relevance of the topic lies in the fact that the level of competitiveness of a bank in waste management will have an increasing impact on its ESG ratings in the future. The purpose of this paper is to improve waste management in a bank (mainly faulty office equipment and paper waste). However, not all banks use active management methods in waste management, so this article offers recommendations for the successful management of key indicators. The article uses data on waste from banks in Bangladesh, China, Indonesia, Kuwait, India, Malaysia, Nepal, Pakistan, Sri Lanka, the UAE, and Vietnam. The objectives of the study include: identification of the essence of the competitiveness of waste management in a bank; consideration of the types of competitiveness of waste management; assessment of the impact of blockchain technology on the competitiveness of waste management; assessment of minimizing waste management costs in a bank. A method for waste composition and waste export based on statistical analysis and a regression model. It used data about the current waste management activities of a bank. This study uses data from an annual time series covering the period from 2013 to 2021. The results of the study confirm that the problem of electronic waste of banks in Asia can be solved by increasing financing and a complete analysis of bank waste. There are points of novelty in the article: (1) the essence of the competitiveness of waste management in a bank is determined, which consists in the recycling of most waste and not in their disposal; (2) the ideas of the competitiveness of waste management are considered in Sberbank; (3) the impact of blockchain technology on the competitiveness of waste management in banks is assessed; (4) an assessment of the competitiveness of waste management in a commercial bank is given. In order to better understand the factors influencing the production of e-waste in the region, the study focuses on the significance of addressing the rising problem of e-waste in Asia and the need for better collection and analysis of waste data in a bank. The main conclusion is the need to recycle waste and increase recycling costs in the future, which is the most environmentally friendly option compared to incineration.

The Impact of Intellectual Capital and Corporate Governance on Bank Performance in Vietnam

Purpose – The importance of corporate governance and intellectual capital on financial performance has largely been ignored in emerging markets. The banking sector is considered to accumulate a higher level of intellectual capital and to adopt a better corporate governance system. We aim to examine the contribution of these two important aspects to the performance of Vietnam's banking sector. Design/methodology/approach – This paper utilizes data collected from the annual reports of banks in Vietnam from 2011 to 2021. The modified value-added intellectual coefficient (MVAIC) model is adopted to measure a bank's intellectual capital efficiency. In addition, the generalized method of moments is utilized to ensure the robustness of the findings. Findings – Empirical results strongly confirm that intellectual capital positively contributes to a bank's performance. In terms of corporate governance, the findings indicate that board size, board remuneration and major shareholders holding more than 20 percent of outstanding shares are the three most important factors that contribute positively to banks' performance. In addition, human capital efficiency and capital employed efficiency positively impact a bank's profit. Practical implications – Our study provides valuable evidence and implications for policymakers in managing and enhancing corporate governance and intellectual capital efficiency within the Vietnamese context, particularly in the banking sector. Originality/value – To the best of our knowledge, this is the first empirical paper conducted to examine the contribution of corporate governance and intellectual capital on banks’ performance in Vietnam.

Earnings Management and Bank Liquidity Creation in an Emerging Market

This paper empirically examines the impact of bank earnings opacity on liquidity creation. Using a sample of commercial banks in Vietnam from 2007 to 2019, we find that more opaque banks tend to reduce liquidity creation growth. We further offer sharp evidence that the impact of earnings management on bank liquidity creation depends on bank-specific characteristics. More precisely, the negative impact of bank earnings management on banks’ core function is stronger for banks that are more poorly capitalised, less liquid, smaller and less profitable. With these findings, our work display implications on the supply-side effect (i.e., the limited access to funding of financially weak banks).

Does the perception of training in labor law knowledge affect job satisfaction and organizational commitment in commercial banks?

This study investigates the relationship and the magnitude of the influence of perceived training in labor law knowledge on employees’ organizational commitment, with job satisfaction as a mediating factor. The study concentrates on the commercial banking sector in Vietnam, an emerging developing country in Southeast Asia. Data were gathered through interviews with 496 employees from 20 commercial banks in Vietnam. Applying partial least squares structural equation modeling, the analysis indicates that employees’ perceptions of training in labor law knowledge have both direct and indirect effects on their job satisfaction and organizational commitment. The perceived motivation for training, perceived benefits of training, perceived availability of training, and perceived support from management and colleagues all serve as significant mediators in this relationship. Notably, increased job satisfaction significantly contributes to a positive impact on employees’ commitment to the organization. However, the study results suggest that employees’ perceived benefits of labor law training do not have a significant influence on their commitment to the organization. Nonetheless, these results serve as a foundation for managerial implications, offering valuable insights to enterprise managers in the commercial bank sector to improve future labor law training. AcknowledgmentThis collaborative research involves scholars from the University of Law – Hue University and Duy Tan University. The authors extend their gratitude to both institutions for their support and assistance in facilitating the publication of this research.

Customer Perception on Green Banking - An Empirical Study in Vietnam

Purpose: The objective of this study is to investigate the level of awareness and perception among customers regarding the implementation of green banking practises by commercial banks in Vietnam. Method: The study utilised data obtained from a total of 455 responses and subsequently analysed them by statistical techniques such as Cronbach's Alpha, Exploratory Factor Analysis (EFA), and Multivariate regression. Results and Conclusion: The findings of the study revealed that there is a low level of awareness regarding green banking among customers. However, customers do recognise the significance of green banking. The study also found that the Green Environmental Policy (POL), Performance of Green Banking (PER), and Excellence of Green Banking (EXC) have a positive impact on customer perception (CUSPER). On the other hand, no significant relationship was observed between Corporate Social Responsibility (CSR), Capacity of Staff (STAFF), and Customer Perception (CUSPER). Research implication: The research findings have some implications for banking industry, emphasising the needs for banks to engage in green banking practises.

Factors of Value Chain Affect Bank Efficiency

This paper aims to determine and estimate the factors in the value chain that affect the efficiency of state-owned commercial banks in Vietnam. The study employs a combination of qualitative techniques, such as conducting interviews with top executives, financial managers, chief accountants, and employee surveys, along with quantitative methods like ordinary least squares analysis. The outcomes reveal four critical segments within the value chain – the retail department, operation department, back office, and call center – all of which significantly influence the efficiency of the banks. Additionally, drawing upon value chain theory and Porter's model (1985), the author underscores the significance of implementing a robust value chain strategy. This strategic approach has the potential to substantially enhance the competitive advantages of state-owned commercial banks in Vietnam. Doi: 10.28991/ESJ-2023-07-06-010 Full Text: PDF