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Financial liberalisation, bank ownership type and performance in a transition economy: The case of Vietnam

Journal Article


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Abstract


  • Employing a sample of Vietnamese banks covering the period 2005 to 2015, this study investigates the influence of partial, and selective, financial liberalisation on bank efficiency by ownership type in a transition economy. The key findings are: (1) state-owned banks outperformed all other ownership types; (2) selective privatisation of state-owned banks exerted a positive influence on bank efficiency; (3) rural-to-urban private bank transformation decreased banking system efficiency; (4) minority foreign ownership exerted an insignificant impact on bank efficiency; (5) business group ownership improved the provision of intermediation services but deteriorated overall bank operating efficiency. Overall, the findings suggest that the post-WTO partial-liberalisation of the banking system in Vietnam impacted banks' efficiency differently subject to ownership type, with potentially adverse implications for long term economic growth and development.

Publication Date


  • 2019

Citation


  • Le, P. Thanh., Harvie, C., Arjomandi, A. & Borthwick, J. (2019). Financial liberalisation, bank ownership type and performance in a transition economy: The case of Vietnam. Pacific-Basin Finance Journal, 57 101182-1-101182-17.

Scopus Eid


  • 2-s2.0-85069815795

Ro Full-text Url


  • https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2630&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1612

Has Global Citation Frequency


Start Page


  • 101182-1

End Page


  • 101182-17

Volume


  • 57

Place Of Publication


  • Netherlands

Abstract


  • Employing a sample of Vietnamese banks covering the period 2005 to 2015, this study investigates the influence of partial, and selective, financial liberalisation on bank efficiency by ownership type in a transition economy. The key findings are: (1) state-owned banks outperformed all other ownership types; (2) selective privatisation of state-owned banks exerted a positive influence on bank efficiency; (3) rural-to-urban private bank transformation decreased banking system efficiency; (4) minority foreign ownership exerted an insignificant impact on bank efficiency; (5) business group ownership improved the provision of intermediation services but deteriorated overall bank operating efficiency. Overall, the findings suggest that the post-WTO partial-liberalisation of the banking system in Vietnam impacted banks' efficiency differently subject to ownership type, with potentially adverse implications for long term economic growth and development.

Publication Date


  • 2019

Citation


  • Le, P. Thanh., Harvie, C., Arjomandi, A. & Borthwick, J. (2019). Financial liberalisation, bank ownership type and performance in a transition economy: The case of Vietnam. Pacific-Basin Finance Journal, 57 101182-1-101182-17.

Scopus Eid


  • 2-s2.0-85069815795

Ro Full-text Url


  • https://ro.uow.edu.au/cgi/viewcontent.cgi?article=2630&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1612

Has Global Citation Frequency


Start Page


  • 101182-1

End Page


  • 101182-17

Volume


  • 57

Place Of Publication


  • Netherlands