RIS ID
137736
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 Details
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.