Nga Phan Thi Hang
Banking service is a challenging service industry to measure output, change techniques, or increase productivity. There is disagreement over which banks produce services and how to measure them. Besides, banking services are often priced implicitly through market interest rates below deposit balances, making the observed revenue stream inaccurate to select key outputs to analyze. Therefore, the objective of the paper is to find out internal factors affecting the effectiveness of the commercial banks in Vietnam. The researchers surveyed 650 managers of commercial banks and answered 25 questions, but the sample size of 607 managers processed. The data collected from January 2019 to December 2019 in Ho Chi Minh City and Dong Nai province. Simple random sampling technique. The paper tested Cronbach's Alpha and exploratory factor analysis (EFA). The study used for Structural Equation Modelling (SEM) technique. Finally, the findings of the study have internal factors affecting the effectiveness of commercial banks in Vietnam with a significance level of 0.01.