Using Tobit Model to Estimate the Impact of Factors on Business Efficiency of Vietnam Commercial Bankers

Nguyen Thi Bich Vuong and Nguyen Phi Dat
Additional contact information
Nguyen Thi Bich Vuong: Hanoi Technology Economics College
Nguyen Phi Dat: Banking Academy

Chapter Chapter 3 in Global Changes and Sustainable Development in Asian Emerging Market Economies: Volume 2, 2024, pp 37-45 from Springer

Abstract: Abstract With its position as the “heart” of the economy, business activities of the banking system are always the top concern, especially for the system of joint-stock commercial banks—the type that is rated as the most effective. Vietnam is a developing country with competitive pressure and great challenges coming from its commitments to opening up and integrating, so assessing the business efficiency of the system of Vietnamese joint-stock commercial banks is very important. The chapter uses Tobit regression model to estimate the impact of factors on business efficiency of 30 Vietnamese joint-stock commercial banks during the 7-year period 2015–2021. The estimation results of Tobit regression model on the impact of factors on the bank’s business efficiency show that there are six influential factors—return on equity (ROE), return on asset (ROA), bad debt ratio (NPL), equity/asset ratio (VCSHTS), expense/income ratio (CPTN), and asset size (TTS)—and in which NPL, CPTN, and TTS have negative impact on the bank’s business efficiency, while the variables risk provision ratio (DPRR) and debt/total assets ratio (DNTTS) are not statistically significant.

Keywords: Business efficiency; Tobit regression model; Joint-stock commercial bank of Vietnam (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-68842-3_3

Ordering information: This item can be ordered from
http://www.springer.com/9783031688423

DOI: 10.1007/978-3-031-68842-3_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().