Covid-19 and Factors Affecting the Performance of Listed Commercial Banks in Vietnam: Using a Two-Stage Dea Method

Abstract

This article aims to measure bank performance scores and evaluate the factors that affect bank performance. The study is carried out in stages, including (i) in the first phase, the study evaluates the performance scores of listed commercial banks in Vietnam from 2016 to 2022 using the DEA method; (ii) in the second stage, the individual banks' internal factors, macroeconomic factors and Covid-19 influences are estimated by Tobit regression. The results indicate that the internal factors that affect the bank's efficiency include: (i) the ratio of return on total assets has a positive impact, whereas the ratio of equity to total capital has a statistically negative impact; (iii) bank size has a positive effect on efficiency scores and statistically significant. The inflation rate is not statistically significant in terms of macro factors, including economic growth. The Covid-19 epidemic had an inverse effect on the effectiveness score and was statistically significant.