The thesis studies the relationship between restructuring measures of commercial banking system and the process of restructuring commercial banks affecting the performance of banks as well as the whole banking system. trade in Vietnam, a small open economy and in the process of transition to integration.
1 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN HUU HUAN BANK RESTRUCTURING AND EFFICIENCY THE CASE OF VIETNAM DOCTORAL THESIS IN ECONOMICS Ho Chi Minh City – 2019 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYEN HUU HUAN BANK RESTRUCTURING AND EFFICIENCY THE CASE OF VIETNAM Industry: Banking and Finance Industry ID: 83.40.201 DOCTORAL THESIS IN ECONOMICS Instructor: AsPro.Dr Tran Huy Hoang AsPro.Dr Vo Xuan Vinh Ho Chi Minh City – 2019 STATEMENT OF AUTHORSHIP I’m hereby declare that this submission is my own work and except where due reference is made; this thesis contains no material previously published or written by another person(s) This thesis does not contain material extracted in the whole or in part from thesis or report presented for another degree of diploma in University of Economics Ho Chi Minh city or in any other education institution Nguyen Huu Huan July 2019 TABLE OF CONTENT LIST OF TABLES LIST OF FIGURES Figure 3.1. Result after the merger of the authorized capital………………………55 Figure 3.2. Result after banking consolidation and merger in 2015……………….57 ABBREVIATION 2SLS: Twostage least squares CBs: Commercial banks DEA: Data Envelopment Analysis DMU: Decision unit ESS: Scaleefficiency hypothesis ESX: Xefficiency hypothesis GLS: Generalized least squares IMF: International monetary fund NPL: Non performing loan OLS: Ordinary Least Square QLH: Quietlife hypothesis RMP: Relative market power ROA: Return on asset ROE: Return on Equity RQ1: Research question 1 RQ2: Research question 2 SBV: State Bank of Vietnam SCP: Structure, Conduct and Performance paradigm SEFF: Scaleefficient hypothesis SFA: Stochastic Frontier Analysis 10 VAMC: Vietnam Asset Management Company XEFF: XEfficiency ABSTRACT The link between bank restructuring and bank efficiency is an appealing area that draws strong attention from both academic and industry practitioners. Vietnam offers an interesting case to analyze this link however this issue remains unexplored. This thesis investigates the association between bank restructuring and bank efficiency in Vietnamese banking system The thesis employ the Data Envelopment Approach and Stochastic Frontier approach. Our data sample includes 26 commercial banks covering the period 19992015. The finding indicates that the government’s restructuring policies in the first stage did not benefit the banks implementing the restructuring methods. Regarding to the effect of different restructuring methods, the privatization of stateowned commercial banks, state intervention and mergers and acquisitions (M&As) do not substantially improve efficiency Besides, it is found that the bank efficiency declines during the restructuring period not only because of the transition cost but also due to the changes of other environment variables, such as financial crisis or domestic economy slowdown The thesis contributes to the banking literature by examining the allocative and technical efficiency of Vietnamese banking system in the recent period (2001 2015) It shows that decreasing the government's control of the banking system makes the system more competitive. On the other hand, it makes domestic banks ... link however this issue remains unexplored. This thesis investigates the association between bank restructuring and bank efficiency in Vietnamese banking system The thesis. .. indicated that the performance efficiency of the United States’ banks was unaffected after the banking restructuring Therefore, this thesis needs to research the linkage between bank restructuring and efficiency to investigate whether this relationship in an ... improve the efficiency of the banking operation In this statement, the restructuring includes financial restructuring, restructuring activities and corresponding safety monitoring with three goals. Alexander (1997) suggested that "A