ISSN 2394-5125
 

Research Article 


EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM

Ta Minh Tri, Nguyen Phuong Anh.

Abstract
Nowadays, the Vietnamese banking system has put more effort into the restructuring program,
which has been drawing plenty of public attention. This paper is written to explore the efficiency of a sample of
26 domestic banks in the years between 2010 and 2018 by utilizing the Stochastic Frontier Analysis (SFA) with
the support of the distance function. Furthermore, the pre-post analysis is used to find out whether the merger
has any influence on the performance of Vietnamese banks. Both the intermediation approach and production
approach are employed for the determination of inputs and outputs variables to estimate the efficiency scores.
This research discovered the technical efficiency of banks was 85% on average. The technical efficiency in the
post-merger period can show evidence of improvement under the intermediation approach. Nevertheless, no
such significant growth after the merger was found when applying the production approach. This paper can
provide perceptive findings for policymakers, bank stakeholders and researchers who work in this field.

Key words: Bank Efficiency; Bank Merger; Stochastic Frontier Analysis


 
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How to Cite this Article
Pubmed Style

Ta Minh Tri, Nguyen Phuong Anh. EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. JCR. 2020; 7(16): 320-329. doi:10.31838/jcr.07.16.39


Web Style

Ta Minh Tri, Nguyen Phuong Anh. EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. http://www.jcreview.com/?mno=3487 [Access: April 18, 2021]. doi:10.31838/jcr.07.16.39


AMA (American Medical Association) Style

Ta Minh Tri, Nguyen Phuong Anh. EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. JCR. 2020; 7(16): 320-329. doi:10.31838/jcr.07.16.39



Vancouver/ICMJE Style

Ta Minh Tri, Nguyen Phuong Anh. EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. JCR. (2020), [cited April 18, 2021]; 7(16): 320-329. doi:10.31838/jcr.07.16.39



Harvard Style

Ta Minh Tri, Nguyen Phuong Anh (2020) EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. JCR, 7 (16), 320-329. doi:10.31838/jcr.07.16.39



Turabian Style

Ta Minh Tri, Nguyen Phuong Anh. 2020. EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. Journal of Critical Reviews, 7 (16), 320-329. doi:10.31838/jcr.07.16.39



Chicago Style

Ta Minh Tri, Nguyen Phuong Anh. "EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM." Journal of Critical Reviews 7 (2020), 320-329. doi:10.31838/jcr.07.16.39



MLA (The Modern Language Association) Style

Ta Minh Tri, Nguyen Phuong Anh. "EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM." Journal of Critical Reviews 7.16 (2020), 320-329. Print. doi:10.31838/jcr.07.16.39



APA (American Psychological Association) Style

Ta Minh Tri, Nguyen Phuong Anh (2020) EFFECT OF BANK MERGER ON EFFICIENCY USING STOCHASTIC FRONTIER ANALYSIS: THE CASE OF VIETNAM. Journal of Critical Reviews, 7 (16), 320-329. doi:10.31838/jcr.07.16.39