Impact of covid 19 on business efficiency of Vietnam commercial banks
Main Article Content
Abstract
The purpose of this research is to study the impact of the Covid-19 pandemic on the business efficiency of Vietnam's commercial banks. The business performance of commercial banks is measured by the return on equity (ROE) and the return on total assets (ROA). The panel data regression method is used to test the impact of Covid-19 on the business performance of Vietnamese commercial banks on the basis of a system of secondary data collected from 21 banks in the period 2012–2021. The estimated results show that Covid-19 has negatively affected, significantly reducing the business efficiency of Vietnamese commercial banks. In addition, the study also showed that the business performance of banks is affected by the ratio of equity to total assets, the capacity to manage credit risk costs. It is recommended that managers have appropriate response solutions (such as expanding investment activities, strengthening risk management, increasing the size of capital and assets) to improve business efficiency when the epidemic is still likely to last but still ensure capital support for organizations and individuals to overcome difficulties after the Covid-19 pandemic.
Article Details
Keywords
Business efficiency, Commercial banking, Covid-19
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