Operational Efficiency of Bank Loans and Deposits: A Case Study of Vietnamese Banking System

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dc.citation.issue1
dc.citation.volume6
dc.contributor.authorNguyen T
dc.contributor.authorTripe D
dc.contributor.authorNgo T
dc.date.available2018-03
dc.date.issued2018-03
dc.description.abstractThis paper examines whether there is a causal relationship between bank loans and deposits in the Vietnamese banking system and the efficiency of the use of loans and deposits by the Vietnamese banks. In a country such as Vietnam, where inter-bank money markets are relatively underdeveloped, one would expect a reasonably strong relationship between deposits and loans. A pooled cross-sectional sample of financial ratios is collected from annual reports of 44 Vietnamese banks covering the period 2008–2015. The explanatory power of instrumental variables in relation to the endogenous variables is tested. A deterministic frontier model based on corrected ordinary least squares, estimated by three-stage least squares on a simultaneous equations model, is employed to derive the frontiers for the sampled banks as well as to estimate the causality between bank loans and deposits. Our findings suggest that, in an underdeveloped banking system such as Vietnam, bank deposits have a positive and significant impact on bank loans, but the reverse relationship is not significant. It is further suggested that in deposit-taking and loan-creating activities, Vietnamese banks performed moderately well over the period examined; however, in the near future, they should start to focus more on deposit-taking activities.
dc.description.confidentialfalse
dc.edition.editionMarch 2018
dc.format.extent? - ? (13)
dc.identifierhttp://www.mdpi.com/2227-7072/6/1/14
dc.identifier14
dc.identifier.citationInternational Journal of Financial Studies, 2018, March 2018, 6 (1), pp. ? - ? (13)
dc.identifier.doi10.3390/ijfs6010014
dc.identifier.eissn2227-7072
dc.identifier.elements-id400700
dc.identifier.harvestedMassey_Dark
dc.languageEnglish
dc.publisherMDPI (Basel, Switzerland)
dc.publisher.urihttp://www.mdpi.com/2227-7072/6/1/14
dc.relation.isPartOfInternational Journal of Financial Studies
dc.rightsThis is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
dc.subjectsimultaneous equations model (SEM)
dc.subjectcorrected ordinary least squares (COLS)
dc.subjectthree-stage least squares (3SLS)
dc.subjectcausality
dc.subjectloans
dc.subjectdeposits
dc.subjectVietnamese banks
dc.titleOperational Efficiency of Bank Loans and Deposits: A Case Study of Vietnamese Banking System
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Aviation
pubs.organisational-group/Massey University/Massey Business School/School of Economics and Finance
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