Payment system and bank performance: Evidence from Vietnam
Journal of Contemporary Issues in Business and Government,
2021, Volume 27, Issue 2, Pages 91-94
AbstractThis paper investigates the relationship between the business of payment system and the performance of banking industry in Vietnam. Using data of 20 listed banks from 2009 to 2019, we find that the innovations in mobile payment have significant impact on bank performance, while the traditional types of payment show little evidence. We also argue that payment system in Vietnam does not contribute much to the stability of banks’ performance.
JEL classification: G01, G21, G28
- Akhisar, I., Tunay, K.B. and Tunay, N., 2015. The effects of innovations on bank performance: The case of electronic banking services. Procedia-Social and Behavioral Sciences, 195, pp.369-375.
- Amromin, G. and Chakravorti, S., 2009. Whither Loose Change? The Diminishing Demand for Small‐Denomination Currency. Journal of Money, Credit and Banking, 41(2‐3), pp.315-335.
- Beijnen, C. and Bolt, W., 2009. Size matters: Economies of scale in European payments processing. Journal of Banking & Finance, 33(2), pp.203-210.
- Berger, A. N. – Hancock, D. – Marquardt, J C (1996) A Framework for Analyzing Efficiency, Risks, Costs, and Innovations in the Payments System. Journal of Money, Credit and Banking 28 (Part 2), 696–732.
- Berger, A. N. – DeYoung, R. (2006) Technological Progress and the Geographic Expansion of Commercial Banks. Journal of Money, Credit, and Banking 38 (6), 1483–1513.
- Bolt, W. and Humphrey, D., 2007. Payment network scale economies, SEPA, and cash replacement. Review of network Economics, 6(4).
- Ciciretti, R., Hasan, I. and Zazzara, C., 2009. Do internet activities add value? Evidence from the traditional banks. Journal of financial services research, 35(1), pp.81-98.
- De Haan, J. and Poghosyan, T., 2012a. Bank size, market concentration, and bank earnings volatility in the US. Journal of International Financial Markets, Institutions and Money, 22(1), pp.35-54.
- De Haan, J. and Poghosyan, T., 2012b. Size and earnings volatility of US bank holding companies. Journal of Banking & Finance, 36(11), pp.3008-3016.
- Hasan, I. (2002). Do Internet activities add value? The Italian bank experience. Fondo Interbancario Di Tutela Dei Depositi, Essays, No. 2, July.
- Kemppainen, K. (2008). Integrating European Retail Payment Systems: Some Economics of SEPA. Bank of Finland Discussion Papers.
- Scholnick, B – Massoud, N – Saunders, A – Carbo-Valverde, S – Rodríguez- Fernández, F (2007) The Economics of Credit Cards, Debit Cards and ATMs: A Survey and Some New Evidence. Journal of Banking and Finance 32(8), 1468–1483.
- Weigelt, C. and Sarkar, M.B. (2012). Performance implications of outsourcing for technological innovations: Managing the efficiency and adaptability trade-off. Strategic Management Journal, 33, 189-216.
- Article View: 255
- PDF Download: 274