Volume 10, Issue 2, 2020

State-ownership and bank risk: A case of Vietnamese commercial banks

Author - Affiliation:
Nguyen Thanh Hung - School of Banking, University of Economics Ho Chi Minh City, Vietnam
Pham Phu Quoc - School of Banking, University of Economics Ho Chi Minh City, Vietnam
Corresponding author: thanhhung.tg@gmail.com

The paper aims to verify the impact of state-ownership on banks’ risks at Vietnamese commercial banks. Based on the survey data of 31 commercial banks in Vietnam from 2007 to 2018, the empirical result shows that the state-ownership in the Vietnamese commercial banks has a decrease in the banks’ risks. Besides, the research result is shown that the lower Vietnamese commercial banks’ risks at the previous time lead to the lower ones at present. Furthermore, this evidence contributes to the debate of state-ownership for the Vietnamese commercial banks which gives policy-makers to pay more attention to the efficiency of joint-stock state-ownership.

bank risk, FE, GMM system, Pooled-OLS, RE, state-ownership

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