The application of CAMELS to evaluate the bank's performance. A case of MHB

Abstract

International integration has penetrated widely and brought about many influences to the economy all over the world including Vietnam. Vietnam’s economy has had positive steps to improve and develop more especially after the meaningful event of joining in World Trade Organization (WTO) in 2007. It helps the economy of Vietnam to open the market and increase the quality as well as profit gained from international relationships and new technologies and management.

The financial market plays an important role in the economy of a country because it governs the flow of transaction or exchange and provides the quality of living for citizens. So, the banking sector has been currently noticed and concentrated on to contribute to develop the economy. Under the condition of international integration, the banking in Vietnam is also affected strongly. The effectiveness of banking is improved and developed more and more in the effect of international integration which becomes more popular and deeper in Vietnam. Through the evaluation of the performance of Mekong Housing Bank(MHB), a State-Owned Bank of Vietnam, in 2 periods pre and post year 2007, when Vietnam became a member of WTO, the results and changes in its activities reflect the strong influence of international integration to the bank.