TITLE:
Factors Affect Competitiveness of Vietnamese Commercial Banks
AUTHORS:
Mai Thi Phuong Thuy, Mai Binh Duong
KEYWORDS:
Competitiveness, SGMM, Lerner
JOURNAL NAME:
Open Access Library Journal,
Vol.8 No.7,
July
27,
2021
ABSTRACT: In the international integration trend, enhancing the competitive power of Vietnamese financial system in general and Vietnamese commercial banks is an important issue that has begun to be discussed in the second half of the 20th century when the wave of investment capital moves from developed countries to developing countries is flourishing. This paper provides more evidence about the macro and micro factors affecting competitiveness of Vietnamese commercial banks via Lerner ratio. Applying SGMM method of Arellano & Bond (1991) for the panel data from 30 Vietnamese commercial banks in the period 2007-2018, the results show that the factors increasing the competitiveness of the banks are variable LERNER with one-year lag, the capital ratio (CAP), in which the credit loss provision ratio (LLP), inflation rate (INF), bank size (SIZE) have a negative effect on competitiveness.