Liquidity and Credit Risks: Evidence from Commercial Banks in Vietnam

[...]our study provides recommendations for bank managers and policymakers to develop a sustainable banking system. According to the State Bank of Vietnam, the total amount of reduced interest accumulated from July 15, 2021, to November 30, 2021, of 16 Vietnamese commercial banks is about VND 18,095...

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Bibliographic Details
Published in:Montenegrin journal of economics 2024-01, Vol.20 (1), p.7-16
Main Authors: Dang, Thuy Thu, Truyen, Pham Thanh, Gam, To Thi Hong, Le, Al Ngoc Nhan
Format: Article
Language:English
Subjects:
Bank liquidity
Banking industry
Commercial banks
Credit risk
Diversification
Economic crisis
Economic growth
Generalized method of moments
International finance
Nonperforming loans
Profitability
Profits
Standard scores
Subprime lending
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Summary:[...]our study provides recommendations for bank managers and policymakers to develop a sustainable banking system. According to the State Bank of Vietnam, the total amount of reduced interest accumulated from July 15, 2021, to November 30, 2021, of 16 Vietnamese commercial banks is about VND 18,095 billion. [...]policymakers should encourage banks to improve their liquidity creation in the period of boosting economic growth. [...]in 2008, to avoid the negative impact of the economic recession, the State Bank of Vietnam issued measures to stimulate demand, thus encouraging commercial banks to provide credit to domestic enterprises. [...]our study uses a comprehensive data set of Vietnamese commercial banks ranging from 2009 to 2020 to reflect the comprehensive influence of liquidity creation on non-performing loans in the post-financial crisis of 2008.
ISSN:1800-5845
1800-6698
DOI:10.14254/1800-5845/2024.20-1.1