Factors Affecting the Operational Efficiency of Commercial Banks in Bac Giang, Vietnam
Abstract
This study investigates the factors affecting the operational efficiency of commercial banks in Bac Giang, Vietnam. Data was collected from a survey of 400 bank employees and managers in Bac Giang. The study employs the Exploratory Factor Analysis (EFA) method to identify key factors influencing bank efficiency and regression analysis to examine the relationship between these factors and bank performance. Five independent variables are considered: management capacity, financial capacity, technological capacity, service quality, and competitive environment, and the dependent variable is operational efficiency. The findings reveal that all five independent variables have a significant positive impact on banks’ operational efficiency. The study provides valuable insights for bank managers and policymakers in Bac Giang to improve the performance of commercial banks.
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