Impact of information and communication technology on banking efficiency: the Vietnamese experience

Thanh Ngo and Tu Le

Chapter 13 in Handbook of Banking and Finance in Emerging Markets, 2022, pp 238-253 from Edward Elgar Publishing

Abstract: Although there is a substantial amount of research on the impacts of information and communication technology (ICT) on firm performance as well as on the development of the banking industry, whether the ICT can improve banking efficiency is still an open question, especially in emerging countries such as Vietnam. This chapter examines the impact of ICT development on the operational efficiency of the Vietnamese banking sector during the 2007-2019 period. In the first stage, the efficiency and productivity changes over time of the sampled banks were estimated using a Euclidean common set of weights Data Envelopment Analysis approach. In the second stage, those efficiency and productivity measures are then regressed on several macro- and micro-characteristics of the Vietnamese banking sector, including the level of ICT development in sampled banks. We found that the efficiency of Vietnamese banks is positively contributed by their ICT development; however, this contribution differs among banks.

Keywords: Development Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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