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Building a Model of Indicators Affecting the Business Efficiency of the Military Commercial Joint Stock Bank.


able to be converted into cash quickly, ensuring the bank's liquidity needs. However, by 2013, the liquidity ratio had dropped to 17.42% due to a decrease in deposits at the State Bank and other credit institutions. Thus, the possibility of MB having liquidity problems is not high.

2.2.5.2 Ratio of outstanding debt/total assets

Table 2.16: Outstanding loans to total customer deposits

Unit: billion VND


Target

2008

Year 2009

Year 2010

2011

2012

2013

Outstanding debt

15,740

29,587

48,796

59,044

74,478

87,743

Customer deposits

27,162

39,978

65,740

89,548

117,747

136,099

Outstanding Loans / Deposits

customer (LDR)

57.95%

74%

74.23%

65.94%

63.25%

64.47%

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Building a Model of Indicators Affecting the Business Efficiency of the Military Commercial Joint Stock Bank.

(Source: Consolidated financial statements 2008 - 2012)

MB's loan-to-deposit ratio (LDR) has been on a downward trend, from 74% in 2009 to 63.25% in 2012. The reason is that in 2009 and 2010, the growth rate of customer loans was higher than the growth rate of customer deposits, along with the bank's increased lending activities. By 2011 - 2013, this ratio decreased to 64.47% but was still lower than the average of the banking industry (85%), due to economic difficulties, banks implemented a credit tightening policy to control risks, leading to the growth rate of outstanding loans decreasing more sharply than the growth rate of deposits. This ratio of MB is quite safe, so the possibility of MB encountering liquidity risks is not high.

2.3 Building a model of indicators affecting the business efficiency of the Military Commercial Joint Stock Bank.

2.3.1 Research design

2.3.1.1 Basis for building research model:

* Expert method: From the CAMELS model on indicators for evaluating the business performance of the bank and receiving comments from managers of the Military Commercial Joint Stock Bank such as Mr. Nguyen Dang Nghiem, Dau Quang Lanh (member of the board of directors), Nguyen Huu Cuong (Director of the Military Commercial Joint Stock Bank, Cho Lon branch): The bank is a capital business organization, so


To do business, first of all, you need capital. In addition, he also emphasized that for a bank to operate effectively, it is influenced by two main factors: factors from the bank and factors from outside the bank.

b. Survey process

Step 1: Build a questionnaire

Step 2: Determine the required sample size and scale for the survey

There are many conventions on sample size, such as Hair & ctg (1998) said that the sample size should be at least 100 to 150, according to Gorsuch (1983) said that factor analysis requires at least 200 observations. However, the author follows the view of Bollen (1989) that the minimum sample size is 5 samples for a parameter to be estimated. Accordingly, this study has 19 measurement variables, so the minimum sample size is 19 x 5 = 95. To achieve a minimum of 95 research samples, the author sent 200 questionnaires to customers and employees of the Military Commercial Joint Stock Bank.

Step 3: Send survey forms to bank customers, bank employees and managers

Step 4: Contact bank customers, bank staff and managers to follow up on the response results.

Step 5: Collect feedback from bank customers, bank employees and managers.

200 questionnaires were collected, of which 03 were rejected due to invalidity. Therefore, the remaining sample for analysis was 197.

Step 6: Process the data through the use of SPSS analysis tool

2.3.2 Survey results

23.2.1 Description of the research sample

- Regarding gender: 96 respondents were female (48.7%) and 101 respondents were male (51.3%).

- About age: The majority of the age group is in working age, from 45 years old to over 55 years old, accounting for 22.3%

- About qualifications: People with university degrees or higher account for 65%

- About occupation: are civil servants, managers make up the majority.


- The level of importance of each criterion: The observed variables have an importance level from 1 to 5, the lowest average level is 3.97 (BT4) and the highest is 4.43 (BT6). These factors all affect the business performance of the Military Commercial Joint Stock Bank.

2.3.2.2 Cronbach's Alpha scale test 1st time

We have the following Cronbach's Alpha results:

- Factors on the bank side

Table 2.17: Results of Cronbach's Alpha analysis on banking factors


Cronbach's

Alpha

N of

Items

.899

9


Item-Total Statistics


Observation variable

Average scale if type

variable

Scale variance if excluded

variable


Total variable correlation

Cronbach's Alpha if variable is excluded

BT1

33.12

19,920

.672

.889

BT2

32.87

19,407

.593

.893

BT3

32.90

18,643

.668

.888

BT4

33.13

18,550

.653

.889

BT5

32.92

17,442

.695

.887

BT6

32.66

18,704

.737

.883

BT7

32.99

19,066

.681

.887

BT8

33.06

19,364

.659

.889

BT9

33.12

18,900

.685

.886


Conclusion: From the above results, it can be seen that the bank factor includes 9 observed variables from BT1 to BT9, with Cronbach's Alpha coefficient of 0.899 >0.6 and the total correlation coefficient of the observed variables measuring this factor all meet the allowable standard of greater than 0.3, in which the largest is 0.737 (variable BT6) and the smallest is 0.593 (variable BT2). Therefore, the factor


on the bank side meets the requirements and these factor variables will be included in the factor analysis in the next step.

- External factors

Table 2.18: Results of Cronbach's Alpha analysis on external factors


Cronbach's

Alpha

N of

Items


.724

7


Observation variable

Average scale if type

variable

Scale variance if excluded

variable


Total variable correlation

Cronbach's Alpha if variable is excluded

BN1


24.10


8.010

.487

.682

BN2


24.56


7,636

.480

.681

BN3


24.56


7,839

.509

.676

BN4


24.51


8,190

.362

.709

BN5


24.47


7,567

.436

.693

BN6


24.41


8,253

.389

.702

BN7


24.38


7,543

.409

.701


Conclusion: From the above results, it can be seen that the external factor includes 7 observed variables from BN1 to BN7, with Cronbach's Alpha coefficient of 0.724 >0.6 and the total correlation coefficient of the observed variables measuring this factor all meet the allowable standard of greater than 0.3, in which the largest is 0.509 (variable BN3) and the smallest is 0.362 (variable BN4). Therefore, the bank's factor meets the requirements and these factor variables will be included in the factor analysis in the next step.

- Dependent variable

Table 2.19: Results of Cronbach's Alpha analysis on dependent variables


Cronbach's

Alpha

N of

Items

.857

3


Observation variable

Average scale if type

variable

Scale variance if excluded

variable


Total variable correlation

Cronbach's Alpha if variable is excluded

HQ1

8.54

1.811

.706

.823

HQ2

8.36

1,507

.774

.757

HQ3

8.28

1,651

.716

.812


Conclusion: From the above results, it can be seen that the factors affecting the business efficiency of the bank include 3 observed variables from HQ1 to HQ3, with Cronbach's Alpha coefficient of 0.857 >0.6 and the total correlation coefficient of the observed variables measuring this factor all meet the allowable standard of greater than 0.3, in which the largest is 0.774 (variable HQ2) and the smallest is 0.706 (variable HQ1). Therefore, the factors on the bank side meet the requirements and these factor variables will be included in the factor analysis in the next step.

2.3.2.3 Exploratory factor analysis EFA The scale extracted 03 components with: KMO index = 0.807 so it is suitable

Eigenvalue = 1.463 should be suitable

The total extracted variance is 61.982% so it is appropriate. Bartlett's test has a significance level of 0.000 so it is appropriate.

Table 2.20: Results of exploratory factor analysis EFA for dependent variable:


Observation variable

Factor

1

HQ2

.906

HQ3

.873

HQ1

.868


The scale extracted 03 components with: KMO index = 0.723 so it is suitable

Eigenvalue = 2.335 should be suitable

The total extracted variance is 77.838% so it is suitable. Bartlett's test has a significance level of 0.000 so it is suitable.

2.3.2.4 Second Cronbach's Alpha test

- Factors on the bank side

Table 2.21: Results of the second Cronbach's Alpha analysis on the banking factor


Cronbach's

Alpha

N of

Items


.899

9


Observation variable

Average scale if type

variable

Scale variance if excluded

variable


Total variable correlation

Cronbach's Alpha if variable is excluded

BT1


33.12


19,920

.672

.889

BT2


32.87


19,407

.593

.893

BT3


32.90


18,643

.668

.888

BT4


33.13


18,550

.653

.889

BT5


32.92


17,442

.695

.887

BT6


32.66


18,704

.737

.883

BT7


32.99


19,066

.681

.887

BT8


33.06


19,364

.659

.889

BT9


33.12


18,900

.685

.886


Conclusion: From the above results, it can be seen that the bank factor includes 9 observed variables from BT1 to BT9, with Cronbach's Alpha coefficient of 0.899 >0.6 and the total correlation coefficient of the observed variables measuring this factor all meet the allowable standard of greater than 0.3, in which the largest is 0.737 (variable BT6) and the smallest is 0.593 (variable BT2). Therefore, the factor


on the bank side meets the requirements and these factor variables will be included in the factor analysis in the next step.

- Objective factors

Table 2.22: Results of the second Cronbach's Alpha analysis on objective factors


Cronbach's

Alpha

N of

Items


.796

4


Observation variable

Average scale if type

variable

Scale variance if excluded

variable


Total variable correlation

Cronbach's Alpha if variable is excluded

BN1


11.86


3.139

.600

.751

BN2


12.32


2,719

.659

.720

BN3


12.32


2,976

.646

.727

BN4


12.27


3.055

.535

.782


Conclusion: From the above test, we can see that the external factor includes 4 observed variables from BN1 to BN4, with Cronbach's Alpha coefficient of 0.796 >0.6 and the total correlation coefficient of the observed variables measuring this factor all meet the allowable standard of greater than 0.3, in which the largest is 0.535 (variable BN4) and the smallest is 0.659 (variable BN2). Therefore, the external factor meets the requirements and these factor variables will be included in the factor analysis in the next step.

- Customer factors

Table 2.23: Results of the second Cronbach's Alpha analysis on customer factors


Cronbach's

Alpha

N of

Items

.780

3


Observation variable

Average scale if type

variable

Scale variance if excluded

variable


Total variable correlation

Cronbach's Alpha if variable is excluded

BN5

8.21

1,798

.657

.657

BN6

8.15

2,289

.578

.751

BN7

8.12

1,740

.637

.685


Conclusion: From the above test, we can see that the customer-side factor includes 3 observed variables from BN5 to BN7, with Cronbach's Alpha coefficient of 0.780 >0.6 and the total correlation coefficient of the observed variables measuring this factor all meet the allowable standard of greater than 0.3, in which the largest is 0.657 (variable BN5) and the smallest is 0.578 (variable BN6). Therefore, the customer-side factor meets the requirements and these factor variables will be included in the factor analysis in the next step.

2.3.2.5 Regression analysis

Table 2.24: Statistical parameters of each variable in the equation



Unstandardized regression coefficients

Standard regression coefficient

chemical


T


Sig.


VIF

B

Error

standard

Beta

Constant

-.153

.273


-.560

.576


X1

.526

.065

.457

8,138

.000

1,564

X2

.436

.063

.390

6,916

.000

1,576

X3

.100

.043

.106

2,341

.020

1,026


Based on the table above we see:

All three variables are statistically significant.

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