| dc.description.abstract | In recent years, Vietnamese banking sector has recovered and developed, which raised questions on the efficiencies of firms in this sector. This study aims to determine the banks’ efficiency in 2 components, that is economic performance and risk management through a non-parametric approach. The basic of this approach is the separation of production technology into 2 sub-technologies. The first sub-process related to the production of non-interest income and total loans from inputs. The other is connected with the production of interest income from total loans that clearly distinguish between good and bad debts. Economic efficiency is calculated based on interest and non-interest incomes, while risk management efficiency is the minimization of non-performing loans. Using the data from 24 commercial banks, which divided into 2 groups, the result indicated the potential of 14% on increasing in income and 23% on decreasing non-performing loans. Bank managers, especially manager of joint-stock commercial banks, should be cared for the change in the bank’s policies and check for risk in the lending activities. Through the study, banking managers could find the balance between profit and risk management to make appropriate decisions in order to reach target managements. | en_US |
