Analysis of factors affecting performance of Vietnamese commercial banks: testing SCP and es hypotheses

Abstract

The research aims at analyzing factors impacting on performance of Vietnamese commercial banks in the years 2005-2012. The authors test SCP (structure-conduct-performance) and ES (efficient structure) paradigms for factors affecting return ratios of banks. The results show that it is market concentration instead of market share that has positive effects on bank performance as shown in their return on average assets (ROAA) and return on average equity assets (ROAE). Additionally, bank size, ownership, ratio of deposit to total asset and inflation rate also produce effects on performance of commercial banks in Vietnam. These findings allow authors to offer some measures to support a sustainable development for Vietnamese commercial banks.