越南銀行業併購效益之評價: 個案分析

Abstract

The most common reasons for Merge and Acquisition (M&A) in banking industry are to increase profitability as well as operation efficiency. In contrast, the motivation of bank M&A in Vietnam is due to the policy proposed by State Bank of Vietnam (SBV) in order to reduce non-performing loan (NPL). Whether this policy is successful is still in question as until now, there still have no researches about that topic. In addition, few of researches focus on the effects of M&A on bank profitability, management quality and sustainability. Therefore, in this research, under the perspective of microeconomics, I firstly use case study method to examine how M&A has affected on banking performance in three above mentioned aspects and then evaluate SBV’s achievement to reduce NPL ratio. By analyzing six bank financial performance, the empirical results show that M&A affects negatively to bank profitability, management quality but positively to sustainability. The results also show that NPL ratio tends to decrease after M&A, proving that SBV succeeded their goal to reduce NPL ratio by forcing banks to do M&A.

The most common reasons for Merge and Acquisition (M&A) in banking industry are to increase profitability as well as operation efficiency. In contrast, the motivation of bank M&A in Vietnam is due to the policy proposed by State Bank of Vietnam (SBV) in order to reduce non-performing loan (NPL). Whether this policy is successful is still in question as until now, there still have no researches about that topic. In addition, few of researches focus on the effects of M&A on bank profitability, management quality and sustainability. Therefore, in this research, under the perspective of microeconomics, I firstly use case study method to examine how M&A has affected on banking performance in three above mentioned aspects and then evaluate SBV’s achievement to reduce NPL ratio. By analyzing six bank financial performance, the empirical results show that M&A affects negatively to bank profitability, management quality but positively to sustainability. The results also show that NPL ratio tends to decrease after M&A, proving that SBV succeeded their goal to reduce NPL ratio by forcing banks to do M&A.