The Impact of Human Capital Efficiency on Bank Performance: Evidence from Vietnamese Commercial Banks

Abstract

The objective of the study is to assess the impact of human capital efficiency on the bank performance in Vietnam, through several measures such as return on total assets (ROA), Z-score and adjusted profitability ratio. Using a dataset of 26 Vietnamese commercial banks from 2008 to 2023, with two-step SGMM estimation, the study showed that human capital efficiency positively impacts bank performance at a significance level of 1%. This finding shows the important role of human capital in bank operations. In addition, the study also pointed out a number of other factors such as the bank size , the ratio of equity to total assets, cost management efficiency and the Covid-19 pandemic have a positive impact on bank performance, while inflation has a negative impact on these indicators. From the research results, the article proposes some related policy implications.