Official Questionnaire Design

4.1.2.1. Subjective factors

a. Financial resources of commercial banks

Financial resources affect the level of GDPS development. The development of GDPS with large costs requires financial resources, not only including capital for participating in transactions but also costs for technology development, human resource training, and costs for building and developing a separate management model for this business. Therefore, commercial banks with abundant financial resources or easy access to capital sources are more likely to participate in and provide GDPS than other commercial banks. Financial resources can be measured by Bank Size - Total Asset Size (Size of Asset Portfolio). In theory, large banks have more GDPS sales than small banks for many reasons. First, CCPS are very complex instruments and require careful management and analysis. Small banks may not have enough resources to devote to understanding the complexity of these instruments. Moreover, the transaction costs of GDPS tend to decrease with large transaction volumes. Large banks can therefore afford to execute larger transactions for relatively small transaction fees. Finally, large banks are more likely to have greater exposure to market risk especially due to the differentiation in their borrowing sources. Large banks tend to use instruments, such as jumbo CDs, whose prices and yields vary with the market on a daily basis. Therefore, the relationship between GDPS usage and asset size is expected to be positive. In line with this view, (Shyu & Reichert, 2002) found that derivatives activity of international correspondent banks is directly related to bank size.

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H1: Financial resources have a supply-side relationship with GDPS development at commercial banks.

b. Business strategy of commercial banks

The development of GDPS is suitable for large-scale financial institutions that are capable of integrating with the international financial market. This is because large-scale commercial banks have more profit opportunities and at the same time face greater risks. On the one hand, GDPS aims to reduce risks and seek profit opportunities, while on the other hand, they contribute to diversifying banking transactions and bringing certain benefits to customers. Therefore, the development of GDPS is greatly influenced by the business strategy of commercial banks. A commercial bank with a development strategy to integrate with the international banking financial market, diversify business products, and prefer profits tends to participate more in GDPS than other commercial banks.

H2: Product diversification business strategy has a positive relationship with GDPS development at commercial banks.

c. Human resources

Human is always the decisive factor for the success of any activity, strong human resource development will contribute greatly to the success of developing banking business activities in general and developing GDPS in particular. To develop GDPS, it requires bank employees to equip themselves with basic and advanced knowledge of derivatives, the ability to access complex financial transactions in the regional and international financial markets. In addition, it requires bank employees to have the ability to forecast fluctuations in exchange rates, interest rates, and risk forecasting to help make the right decisions to minimize risks and increase profits for banks. In addition, consulting capacity also needs to be improved for GDPS banks provide to customers.

H3: Human resources have a positive relationship with GDPS development at commercial banks.

d. Information technology infrastructure

Technology platforms are important in banking business activities, especially modern and wide-ranging commercial banking activities such as GDPS. To be able to participate in the international financial market, commercial banks need to have analytical tools, modern technology systems, suitable and commensurate with world banking technology to be able to perform banking transactions well. Banking technology is reflected in the synchronization of factors such as: banking technology software, technical facilities, and staff qualifications to use and operate the technology. Banks with highly skilled technical staff will be suitable for GDPS development. Developed banking technology will provide convenient transaction tools, analytical tools to support decision making, increasing the efficiency of transactions. To develop this transaction, commercial banks need a highly skilled technical and scientific team to be able to operate the electronic system, participate in transactions, handle risks and unexpected situations when performing transactions.

H4: Technology level has a positive relationship with GDPS development at commercial banks.

e. Risk management capacity of commercial banks

Business activities in general and banking business in particular always contain risks. When risks occur, the consequences will worsen the financial situation of commercial banks, reduce the reputation and brand of commercial banks, and cause insecurity in the business activities of commercial banks. Improving the capacity of managing business risks of commercial banks is of great significance to the development of commercial banks, ensuring that commercial banks operate stably, sustainably and develop. This is a vital factor for commercial banks. GDPS in commercial banks often have two purposes: hedge risks and seek profits. Improving the capacity of risk management of commercial banks helps commercial banks to be able to use the risk management tools more proficiently and flexibly.

CCPS, using these tools effectively, brings great benefits to banks, practically reduces risks in business operations and brings profits to commercial banks.

H5: Risk management capacity of commercial banks has a positive relationship with GDPS development in commercial banks.

f. Reputation and brand of commercial banks

The brand of a bank is a decisive factor in the survival of banking business activities. A reputable commercial bank with a strong brand has the ability to easily access capital sources, facilitate the proactive expansion of customer relations, increase the bank's operational capacity such as proactively diversifying business activities to disperse risks and increase income, achieving the ultimate goal of the bank which is safety and profitability. GDPS is a rather complicated business of a commercial bank, requiring commercial banks to have prestige and build customer trust. In the context of deep integration with the international financial market, competition between commercial banks is increasingly fierce, prestige and good brand are a great advantage of banks to attract customers, expand the scope of operations, develop banking operations and services including GDPS.

H6: The reputation and brand of commercial banks have a positive relationship with the development of GDPS at commercial banks.

g. Management level

The management capacity of commercial banks is demonstrated through the business thinking of managers, building a banking business operation mechanism to reduce costs, risks, increase profits and safety for banks. In addition, bank managers demonstrate their management level through building management regulations and operating procedures in accordance with international standards and appropriate for each stage of bank development. Although not a new transaction in the international financial market, GDPS are still quite few and small in Vietnam. Developing GDPS requires bank managers to have high management skills, the ability to analyze market trends and macroeconomic fluctuations not only within the country but also globally. With an overview of the international financial market, it will give bank managers confidence in developing GDPS to seek profits and hedge risks for banks.

H7: Management level has a positive relationship with GDPS development at commercial banks.

4.1.2.2. Objective factors

a. Legal environment

The legal environment is a particularly important factor, affecting the operations of all areas of social life. Banking business in general and the services of commercial banks in particular.

In particular, the banking sector is subject to very strict management and supervision by the management documents of the State Bank, the legal system, including Vietnam and other countries in the world. Banks can only implement GDPS when its legality is recognized (specifically expressed by legal recognition of the scope of transactions, transaction methods, transaction goods, etc.). A stable legal environment will have a positive impact on the development of these new types of business because it will ensure the operations of commercial banks by the national legal system, supporting and strongly promoting banking business activities in general and GDPS of commercial banks in particular. Therefore, the legal environment of the country requires more and more improvement and stability to ensure the smooth operation of GDPS activities of commercial banks. If the legal environment is not complete and not consistent, it will make the subjects participating in transactions passive, hindering the development of banking operations.

H8: A complete and synchronous legal environment has a positive relationship with GDPS development in commercial banks.

b. Economic environment

The business environment is a set of political, economic, social, and technological factors. These factors are beyond the control of economic entities and have a great influence on the business activities of economic organizations. One of the environments that has the most important influence on the business activities of commercial banks is the economic environment. The economic environment is the macroeconomic factors that constantly change and constantly impact the business activities of commercial banks. An outdated and underdeveloped economic environment cannot help commercial banks develop new products and services, including GDPS. On the contrary, a stable economic environment, sustainable development, and rapid international economic integration will contribute to the development of modern banking transactions and derivative financial transactions of commercial banks. The factors that make up the economic environment include: Economic growth rate, inflation, unemployment, balance of payments, debt ratio, state budget expenditure, development of the financial market...

In addition to the domestic economic environment, GDPS is also affected by factors of the international economic environment such as exchange rate movements, interest rates, the world economic and financial situation, the level of integration of the Vietnamese economy, etc. When international economic conditions fluctuate, it will affect investment and business activities of countries, affect cash flows in and out of countries and affect banking and GDPS transactions.

H9: Economic development is positively related to GDPS development at commercial banks.

c. Competitor factors

Commercial banks today operate in an increasingly competitive environment, especially when foreign commercial banks enter the market. Banking services are highly homogeneous, commercial banks compete with each other mainly through service quality and diversity of banking services. When competitors aim to develop GDPS and diversify banking services, commercial banks cannot help but consider developing their own GDPS. Large commercial banks, foreign commercial banks with large capital potential, experience in international GDPS, and a team of highly qualified staff capable of using and implementing complex transactions that bring practical efficiency in risk prevention and profit seeking will encourage commercial banks to research and develop GDPS at their banks.

H10: High level of competition has a positive relationship with GDPS development in commercial banks.

d. Factors related to customers

Customers are one of the partners of GDPS with commercial banks. Customers who need GDPS mostly aim to hedge against exchange rate and interest rate risks. For enterprises, customers whose capital structure and assets are greatly affected by exchange rate and interest rate fluctuations will tend to use GDPS more, usually import-export enterprises, economic groups, and multinational companies. However, GDPS are quite complex, requiring users to have good market analysis skills, the ability to forecast and make accurate decisions. Therefore, if customers have the level of understanding and experience in implementing GDPS, GDPS that are practically effective for customers will certainly help this transaction develop further. On the contrary, if customers lack information about transactions, do not fully understand the role of CCPS in risk prevention and profit seeking, and do not understand the techniques of using these tools, it will certainly make it difficult for banks to deploy and develop these transactions for customers.

H11: Customer understanding of GDPS has a positive relationship with GDPS development at commercial banks.

4.1.3. Design of the official questionnaire

Based on the theoretical basis stated in chapters 1 and 2 to evaluate derivative activities and analyze factors affecting GDPS of commercial banks in Vietnam, the researcher has grouped and quantified concepts and designed a quantitative questionnaire to measure the level of influence of factors.

NCS chose the Linkert scale with 5 levels from 1 to 5 corresponding to the level of "Disagree" to "Strongly agree" to survey the opinions of survey participants on the importance of factors affecting GDPS development at Vietnamese commercial banks. Each question will be considered a statement about a factor considered to have an impact on GDPS development of Vietnamese commercial banks. With this design, survey participants will indicate their assessment of the impact of these factors on GDPS development of Vietnamese commercial banks by choosing a scale from 1 to 5.

The questionnaire was initially designed with 33 questions corresponding to 33 factors (variables) that are believed to affect the GDPS development of Vietnamese commercial banks. This questionnaire was used by the researcher to consult with the instructors, colleagues, and friends who have conducted qualitative research. After receiving comments, the researcher brought this questionnaire to test 15 research subjects to see if the research subjects understood correctly and clearly the words and meanings of the questions. At the same time, the researcher also asked about the level of willingness of these research subjects to share information about the questions. As a result, the research subjects interviewed in the pilot study all clearly understood the questions and were willing to share them into two main groups of factors: objective factors and subjective factors belonging to the Bank, in which the objective factors were divided into four subgroups: factors related to policies and legal corridors, factors related to the macroeconomic environment and business environment, factors related to the Bank's customers, and factors related to the Bank's competitors.

After receiving comments, NCS edited and released the official questionnaire (google forms) for mass survey on http://docs.google.com. (Question details are attached in Appendix 2).

4.1.3.1. About the structure of the questionnaire

Introduction: Greetings, introduction to the purpose of the research. Content: The survey questionnaire includes 3 parts:

Part 1: Includes 5 questions in the form of differentiated questions with a nominal scale to find out information about the respondents. This information is used as a classification criterion and to have an overview of the survey participants.

Part 2: Includes 7 questions, using a 5-point Likert scale to help assess the general situation of GDPS development at Vietnamese commercial banks and the role of GDPS with Vietnamese commercial banks.

Part 3: Consists of 33 questions, this is the core question section using a 5-point Likert scale to evaluate factors affecting derivative activities of Vietnamese commercial banks.

4.1.3.2. Contents of the questionnaire:

- Part 1: includes 5 questions about the personal information of the respondent:

+ Field of work.

+ Work experience.

+ Education level.

+ Have you ever learned about GDPS?

+ Have you ever attended NVPS training courses?

- Part 2: includes 4 questions about the current development of GDPS at Vietnamese commercial banks, in which the first 3 questions are surveyed for the general purpose of assessing the development of GDPS at commercial banks and will be used as dependent variables in the research model.

+ PTGDPSS1: Developing derivative financial transactions of commercial banks is the process of increasing the number of transactions, improving the quality and convenience of derivative financial transactions to achieve the business goals of the bank and increase the competitiveness of the bank in the market in a certain period.

+ PTGDPSS2: GDPS development is necessary for commercial banks' business operations.

+ PTGDPSS3: Developing GDPS is an inevitable trend in the future of Vietnamese commercial banks in the integration trend.

+ GDPS development has not received attention from Vietnamese commercial banks and current policies and legal frameworks have not promoted the development of GDPS at Vietnamese commercial banks.

- Part 3 includes 3 questions about the role of developing GDPS for commercial banks, to help us have a correct view of the role and necessity of developing GDPS for commercial banks:

+ Diversify products and services provided to customers of commercial banks.

+ Increase investment and business opportunities to increase profits for commercial banks.

+ Is a solution to prevent and manage risks in the operations of commercial banks.

- Part 4: includes 33 questions (33 variables) and is grouped into 5 main groups of factors: policy and legal corridor (variables CS1 to CS9), Economic environment (variables

MTKT1 to MTKT7), KH (variable KH1 to KH4), Competitors (variable DTCT1 to DTCT3), Subjective (variable CQ1 to CQ10). These are questions aimed at collecting factors that affect GDPS development at commercial banks, including:

+ CS1: Operate fiscal and monetary policies flexibly and correctly.

+ CS2: Research and issue synchronous and timely legal documents to create a complete and perfect legal corridor.

+ CS3: Clear and complete legal regulations aim to protect the rights and legitimate interests of the subjects participating in GDPS.

+ CS4: The Government and the State Bank of Vietnam launch programs to support the development of the GDPS market.

+ CS5: The State Bank has a flexible exchange rate management mechanism with large price fluctuations.

+ CS6: The State Bank has a flexible interest rate management mechanism with large price fluctuations.

+ CS7: Preferential tax policy for GDPS creates favorable conditions for the development of GDPS of commercial banks.

+ CS8: Develop accounting standards on NVPS that are similar and consistent with international accounting standards.

+ CS9: Complete the inspection and supervision regulations of the State Bank to ensure the derivatives market operates healthily and transparently.

+ MTKT1: High and stable economic growth rate contributes to promoting the GDPS of commercial banks.

+ MTKT2: The high increase in total import-export turnover increases the demand for GDPS of import-export enterprises and contributes to the development of GDPS activities at commercial banks.

+ MTKT3: High economic debt will boost GDPS of commercial banks.

+ MTKT4: The development of TTTC is an important factor in developing GDPS.

+ MTKT5: High foreign exchange reserves will promote the development of GDPS at commercial banks.

+ MTKT6: The formation and development of the derivatives market is an important factor promoting the GDPS of commercial banks.

+ MTKT7: The development of the derivatives market creates conditions for the development of GDPS at commercial banks.

+ KH1: Customers' understanding and awareness of CCPS will help them use these transactions more and contribute to the development of commercial banks' GDPS.

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