Banking System Restructure Program 2011-2015 and ongoing challenges for the Stage 2 of the Restructure Scheme 2016-2020

Abstract

deny that SBV has achieved valuable successes, especially under the context of macroeconomic uncertainty
resulted from both internal and external problems. However, this is quite far from the targets designed in the
Bank System Restructure Program 2011- 2015 (issued with Decision 254/QD-TTg) that certainly poses ongoing
challenges to the Stage 2 of the Restructure Scheme 2016-2020 in terms of regulatory ideas, policy visions and
fulfilling capacity. The paper focuses on the obstacles on the way to achieve the objectives of the next five year
banking reform and overcoming these calls for more decisive remedies. Traditional DEA model is also used to
measure the efficiency level of banking system’s operations during the period 1990-2015. The efficiency score
is then incorporated into the Tobit model to further investigate the impact of macroeconomic conditions (fiscal
strain, monetary condition, foreign exchange policy and financial stability) on the level of efficiency. Our paper
also verifies whether the Restructure Scheme has generated positive effects on the efficiency level of banks’
operation. Highlighted findings are the solid basis on which policy recommendations are given to contribute to the
success of the Restructure Program 2016-2020