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Proceedings of the 2021 International Conference on Research in Management & Technovation

Annals of Computer Science and Information Systems, Volume 28

Impacts of Diversification on Operational Efficiency of Vietnam Commercial Bank

DOI: http://dx.doi.org/10.15439/2021KM88

Citation: Proceedings of the 2021 International Conference on Research in Management & Technovation, Vu Dinh Khoa, Shivani Agarwal, Gloria Jeanette Rincon Aponte, Nguyen Thi Hong Nga, Vijender Kumar Solanki, Ewa Ziemba (eds). ACSIS, Vol. 28, pages 5561 ()

Full text

Abstract. This research has focused on the assessment the impacts business diversification can have on the operational efficiency of commercial banks on the basis of regression of array data of 24 Vietnamese commercial banks in the period 2010 - 2020. The findings signify the important benefits of diversification in banking. By diversifying business activities, it is possible for banks to assert their position in the market, improve competitiveness, and thereby have many opportunities to find new incomes from non-traditional activities. Diversification is also a way for banks to limit risks and improve operational efficiency. This is reflected in the fact that the diversification index has positive influences on the bank's operating efficiency both before and after risk adjustment. On the basis of research results, the author gives some policy implications


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