Volume 10, Number 1, June 2015
| Evaluating the Efficiency of Vietnamese Commercial Banks by Using Data Envelopment Analysis Approach
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Abstract
Over the last two decades in Vietnam, the financial system in general and the banking system in particular have been transformed from a monopoly into a diversified system allowing all market players to compete fairly and effectively. During these years, the Vietnamese banking system did gradually develop in terms of size of the banking sector in the economy, number of banking institutions, amount of credits for the economy, and amount of other banking services. However, we still find a lack of research on the efficiency of the banking sector in Vietnam over the time. This study, with a focus on evaluating the efficiency of Vietnamese commercial banks during the period of four years from 2007 to 2010 using Data Envelopment Analysis (DEA).Through this paper, we hope that the main findings can assist bank managers and governors in understanding their bank’s efficiency as well as the reasons of their inefficiency. Additionally, it is hoped that some suggestions can be given in order to improve the efficiency of the Vietnamese commercial banks.
Keywords: Vietnamese Commercial Banks, Efficiency & DEA
JEL Classification: G10, M19