Financial soundness of Vietnamese commercial banks: A CAMELS approach
Tu DQ Le
Institute for Development & Research in Banking Technology, University of Economics &
Law, VNU-HCM
Working Paper IBT2019-01
Abstract
This study investigates the financial soundness of Vietnamese commercial banks between
2008 and 2013 using the combination of data envelopment analysis and CAMELS approach.
These findings indicate that only one state-owned commercial bank is listed of the ten bestperforming banks, suggesting that the implicit support from the government provides less
incentive for these banks to improve their performance. In addition, the ten worst-performing
banks are also indicated so that the State Bank of Vietnam should put more attention on
supervising and monitoring them in order to strengthen the Vietnamese banking system.
Keywords: Vietnam, financial soundness, CAMELS approach, bootstrap-DEA
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