THE EFFECT OF ELECTRONIC BANKING ON BANK PERFORMANCE. Evidence from Commercial Banks in Viet Nam
TRUONG, OANH (2019)
2019
Kuvaus
Opinnäytetyö kokotekstinä PDF-muodossa.
Tiivistelmä
Electronic banking has dramatically transformed the banking industry in the past decades and has gradually become an integrated part of the daily life of banking users. However, there has been a debate on the impact of the e-banking on the bank’s performance. Most of the previous studies have analyzed the impact of the electronic banking in those countries with developed technological infrastructure. Thus, this paper aims to fill the gap by researching the banking industry in Vietnam, which is a developing country and a late adopter of the e-banking technology.
The empirical study conducts the pooled OLS regression model for 24 commercial banks in Vietnam during the period of 2008-2015. Various indicators have been used to represent the bank performance, including the Return on Equity, Return on Assets and Net Interest Margin. The results from the regression model have evidently illustrated the degrading performance of the banks measured in term of ROA and ROE even after the adoption period. Whereas the effect of e-banking expresses a positive sign but insignificant on NIM.
The study reflects the adoption situation and challenges of the e-banking in Vietnam, which could greatly contribute to the development strategy of the local financial institutions. On the other hand, this research also contributes to the empirical literature by validating the results of the previous researches as well as offering some valuable recommendations for the banks and other authorities.
The empirical study conducts the pooled OLS regression model for 24 commercial banks in Vietnam during the period of 2008-2015. Various indicators have been used to represent the bank performance, including the Return on Equity, Return on Assets and Net Interest Margin. The results from the regression model have evidently illustrated the degrading performance of the banks measured in term of ROA and ROE even after the adoption period. Whereas the effect of e-banking expresses a positive sign but insignificant on NIM.
The study reflects the adoption situation and challenges of the e-banking in Vietnam, which could greatly contribute to the development strategy of the local financial institutions. On the other hand, this research also contributes to the empirical literature by validating the results of the previous researches as well as offering some valuable recommendations for the banks and other authorities.