TAILIEUCHUNG - Income diversification and bank efficiency in Vietnam

Income diversification and bank efficiency in Vietnam. This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. | Journal of Economics and Development, , , December 2017, pp. 52-67 ISSN 1859 0020 Income Diversification and Bank Efficiency in Vietnam Nguyen Minh Sang Banking University of Ho Chi Minh City, Vietnam Email: sangnm@ Abstract This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system. Keywords: Bank efficiency; commercial bank; income diversification. Journal of Economics and Development 52 Vol. 19, , December 2017 1. Introduction period 2007-2013 according to SGMM. The result indicated that income diversification had a positive effect on the profitability of Vietnamese commercial banks. Mercieca, Schaeck and Wolfe (2007) proposed that diversification in the banking sector was done in three dimensions: (i) Product lines and services diversification; (ii) Diversification of geographical location, and (iii) Diversification thanks to a combination of product lines, services, and geographical location. Income diversification of commercial banks was associated with the diversification of business activities and the gradual reduction of the income proportion from traditional credit operations. According to the Modern Portfolio Theory (MPT) of Markowitz in 1952, portfolio diversification would help investors or banks minimize risks or maximize profits in the same portfolio risk case. Lam Chi Dung et al. (2015) analyzed the impact of income from

• Ngân hàng - Tín dụng
• Income diversification
• Bank efficiency in Vietnam
• Bank efficiency
• Commercial bank
• Income diversification
• Estimated income
• Income by households
• Households in the Mekong Delta
• Household income
• Diversification index
• Herfindahl Hirschman index
• Generalized method of moments
• Vietnamese banking system
• Risk and income diversification
• These categories
• Banking risks of these categories
• On farm water harvesting
• Crop diversification
• Doubling farmers income
• Promising intervention towards crop diversification
• Rural area
• Household leaders features
• Employment rate
• Human capital
• Household income per capita
• Tạp chí khoa học
• Nghiên cứu chính sách và quản lý
• Bank performance
• Viet Nam Commercial Banks
• Business environment factors
• Bank size
• Joint stock commercial bank
• Bank returns
• Risk adjusted
• Stock market operations
• Labor dependence
• Technical efficiency
• Rural credit
• Small holder coffee farms
• Off farm work
• Rural household
• Critical livelihood strategy
• Mountainous northernmost
• Vietnamese Commercial Banks
• Impact of income diversification
• Health of the banking system
• Thereby provide funding
• Bank liquidity creation
• Summary of Phd thesis
• Summary of Phd thesis Finance – Banking
• Performance of Vietnamese commercial banks
• Financial performance
• Commercial banks
• Non interest income
• Net operating margin
• Islamic commercial banks
• Endogenous switching regression
• Asset diversification
• Herfindahl index
• Eastern India
• Poverty alleviation
• Agricultural development
• Diversification and its determinants
• Alternative income
• Journa science
• International journal of financial research
• Farmland loss
• Informal wage income
• Formal wage income
• Gini decomposition
• Farmers income
• Animal husbandry
• Livestock management
• Animal husbandry by 2022
• Diversification in animal husbandry