Factors affecting performance of commercial banks in Viet Nam

Abstract

Analysis of factors affecting the performance at commercial banks (CBs) have an important role, supporting the bank managers make decisions about the organization and policies affecting back to the influencing factors, to deliver optimum profitability, contributing to improving the capacity of the banking activity in economic integration, international finance. Within the article, the authors apply Tobit model to analyze the factors affecting the performance at commercial banks in Vietnam from a representative sample of 17 banks in the period 2008 to 2013. The results showed that matching variables in the model may represent the overall impact on operational efficiency in commercial banks in Vietnam, high reliability including variable size of total assets, number of employees, and type of ownership of NH; which turns the scale total assets and number of employees have the most positive impact. The variable ratio of equity/total assets, the ratio of NPLs/total loans ratio customer deposits/total outstanding loans, GDP per capita, and the consumer price index in the limits of the survey data, the author did not found significant relationship with statistical indicators of technical efficiency.