COMPETITITON POWER, RISK AND EFFICIENCY: EVIDENCE FROM VIETNAM COMMERCIAL BANKING SYSTEM

Abstract

The main purpose of this paper investigates factors affecting bank efficiency, especially competitive power and risk in the context of Vietnamese banks from 2005-2014. The authors use a number of indicators to measure risk and efficiency. The study also considers other factors including industry and macroeconomic variables. Employing two step system GMM, the authors find that risk is negatively associated with bank efficiency. Market power has a positive effect on bank efficiency. The authors also find the evidence of other factors affecting bank efficiency.