A Comparative Study on Vietnamese Commercial Bank’s Efficiency: Intermediation Approach versus Profit-based Approach
Since banking system is considered as the lifeblood of the national economy in Vietnam with its
activity encompasses all socio-economy, evaluating bank’s performance efficiency is one of the important
subjects for societies in general and for the banks in particular. Many researchers have researched in this field.
However, there are not many researches focusing on comparing the differences results causing by using the
different approaches. The main purpose of this research work is firstly to evaluate the efficiency of commercial
banks in Vietnam generally, then to make the comparison between the intermediation approach’s results and
profit-based approach’s in order to find out the differences. The non-parametric approaches- Data Envelopment
Analysis (DEA) is used to evaluate efficiency of Vietnamese commercial banks during the period 2010-2015.
Index Terms - DEA; Efficiency of commercial banks, intermediation approach; profit-based approach