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

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Nguyen Thanh Hung ◽  
Pham Phu Quoc
Keyword(s):  
Survey Data ◽  
Empirical Result ◽  
Commercial Banks ◽  
Research Result ◽  
State Ownership ◽  
The State ◽  
Bank Risk ◽  
Policy Makers ◽  
The Impact ◽  
Time Lead

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.

Restructuring Measurements Impact on Bank Risk After the Global Financial Crisis — Empirical Evidence from Vietnam

2021 ◽  
pp. 2150019
Author(s):  
Tu T. T. Tran ◽  
Yen Thi Nguyen
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking System ◽  
The State ◽  
Bank Risk ◽  
The Government ◽  
The Global Financial Crisis ◽  
Bank System ◽  
The Impact

Project 254 signed in November 2011 which is relating to “Restructuring the system of credit institutions in the period of 2011–2015” has been considered as a milestone in marking the Vietnamese government to prevent the influence of the financial crisis of 2008. This paper identifies hypotheses evaluating the impact of restructuring measurements on the risk of the Vietnamese’s commercial banks in 10 years, starting from 2008. Using the OLS regression method for analysis by running Eviews and ANOVA test in SPSS with a unique database of 216 observations of 31 commercial banks in Vietnam, it was found that: (i) The bail-out activities of the State Bank of Vietnam in 2015 does not influence on bank risk, (ii) The mergers and acquisitions (M&A) do not support the bank to reduce risk, it increases the risk for acquiring banks, (iii) The global crisis 2008 exerts dire consequence on the bank system in Vietnam, (iv) There is the difference of risk among the groups of the bank experiencing a different number of years of operation. Basing on this result, the paper also makes recommendations to the Government, The State Bank of Vietnam and the commercial banks for effective risk management toward the development of the Vietnamese banking system.

Materialism and Green Purchase Intention: A Study of Urban Vietnamese Consumers

2017 ◽  
pp. 89-106 ◽  
Author(s):  
Mai Nguyen Thi Tuyet ◽  
Hung Nguyen Vu ◽  
Linh Nguyen Hoang ◽  
Minh Nguyen Hoang
Keyword(s):  
Conceptual Framework ◽  
Survey Data ◽  
Purchase Intention ◽  
Behavioral Control ◽  
Subjective Norm ◽  
Perceived Behavioral Control ◽  
Policy Makers ◽  
Tpb Model ◽  
Research Findings ◽  
The Impact

This study focuses on examining the impact of three components of materialism on green purchase intention for urban consumers in Vietnam, an emerging economy. An extended Theory of Planned Behavior (TPB) is applied as the conceptual framework for this study. The hypotheses are empirically tested using survey data obtained from consumers in Hanoi, the capital of Vietnam. The regression results show support for most of our hypotheses. The findings indicate that two out of three facets of materialism are significant predictors of green purchase intention. Specifically, success is found to be negatively related to purchase intention, while happiness is related positively to the intention. All three antecedents in the TPB model, including attitude towards green purchase, subjective norm, and perceived behavioral control are also found to have positive impacts on purchase intention. The research findings are discussed and implications for managers and policy makers are provided.

scholarly journals Examining banking productivity drivers in MENA banks after financial liberalisation in 1990s

2019 ◽  
Vol 8 (1) ◽  
pp. 59-74
Author(s):  
Hatem Elfeituri
Keyword(s):  
Commercial Banks ◽  
Technological Progress ◽  
Banking Sector ◽  
State Ownership ◽  
Scale Efficiency ◽  
Efficiency Change ◽  
Mena Countries ◽  
Financial Liberalisation ◽  
The Impact ◽  
Banking Productivity

The paper investigates whether deregulation and economic reforms have transformed the MENA banking sector into a more productive and efficient sector. This is the first study to cover a large sample of 11 MENA countries for an extended and recent period (1999-2012). Initially, this paper estimates the productivity and efficiency of MENA commercial banks using Malmquist DEA to estimate productivity (TFP), technological and technical efficiency, and scale efficiency change in order to investigate to what extent banking productivity in MENA economies has improved during the study period. Then, Tobit model is employed to examine the impact of bank and macroeconomic variables on the total factor productivity of MENA commercial banks. The obtained MPI results suggest that commercial banks operating in the Gulf countries have exhibited productivity progress mostly due to the technological progress rather than efficiency change. Results also suggest that expenses preference behaviour would help banks to enhance their productivity in the examined period and MENA countries. Whilst banking productivity is improved by financial reforms and technological progress, such findings overall do not indicate that foreign participation or state ownership lead to enhance productivity of banks, whilst suggesting that a number of sound policies should be implemented taking into account the characteristics of banking sector in MENA countries.

REVENUE DIVERSIFICATION AND BANKING RISK: DOES THE STATE OWNERSHIP MATTER? EVIDENCE FROM AN EMERGING MARKET

2020 ◽  
Vol 15 (04) ◽  
pp. 2050019
Author(s):  
GIANG THI HUONG VUONG ◽  
MANH HUU NGUYEN
Keyword(s):  
Commercial Banks ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
State Ownership ◽  
The State ◽  
Least Square ◽  
Revenue Diversification ◽  
Income Diversification ◽  
Empirical Results ◽  
Banking Risk

Our paper investigates the influence of state ownership on the linkage between revenue diversification and risk of Vietnam domestic commercial banks in the period 2009–2018. By using the Generalized Method of Moments (GMM) estimation for a dynamic panel model, the empirical results indicate that Vietnamese domestic commercial banks with higher state equity are promoted to take more risks in the revenue diversification process. Our findings are robustly checked by a variety of measures of banking risk, income diversification, and state equity. Empirical results from our dynamic model are not only accordant with the previous findings of Batten and Vo [(2016). Bank risk shifting and diversification in an emerging market. Risk Management, 18(4), 217–235] estimated by Ordinary Least Square (OLS) regression on the positive relationship between banking risk and income diversification in Vietnamese domestic commercial banks but also provide new evidence on the tradeoff relationship between risk-return in the operating strategy of Vietnamese state-owned banks in the post-financial crisis. This paper proposes a framework for evaluating the nexus between revenue diversification and risk from the state ownership aspect in other frontier markets.

The Role of Bank Liquidity and Bank Risk in Determining Bank Capital: Empirical Analysis of Asian Banking Industry

2020 ◽  
Vol 23 (03) ◽  
pp. 2050020 ◽  
Author(s):  
Faisal Abbas ◽  
Shahid Iqbal ◽  
Bilal Aziz
Keyword(s):  
Emerging Economies ◽  
Commercial Banks ◽  
Banking Industry ◽  
Negative Association ◽  
Bank Risk ◽  
Standard Errors ◽  
Bank Capital ◽  
Short Run ◽  
The Impact

This study provides new insights about how bank liquidity and bank risk have influenced the capital ratio of commercial banks operating in Asia’s emerging economies after the financial crisis 2007–2008. The data were collected for 377 banks from the Bankscope database covering the period of eight years between 2010 and 2017. The linear regression panel-corrected standard errors approach is used to find consistent estimators. The results of the overall sample and medium-sized banks regression revealed a positive relationship between bank liquidity and bank capital ratio, whereas the liquidity and bank capital ratio of large commercial banks have a negative association. The impact of liquidity on bank capital ratio is positive but insignificant in the case of smaller banks. The impact of bank risk on bank capital ratio is negative in the case of smaller and medium-sized banks, whereas the association is found positive in the case of larger and overall banks data results in short run, other things remain unchanged. The findings have valued information for researchers, analysts, managers, and policymakers.

scholarly journals The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks

2020 ◽  
Vol 13 (10) ◽  
pp. 228
Author(s):  
Hai Long Pham ◽  
Kevin James Daly
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Value At Risk ◽  
Banking System ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Equation Modeling ◽  
Least Squares Regression ◽  
Basel Accord ◽  
The Impact

This paper is an attempt to empirically examine the impact of Basel Accord regulatory guidelines on the risk-based capital adequacy regulation and bank risk management of Vietnamese commercial banks. Our research aims to assess how Vietnamese commercial banks manage their capital ratio and bank risk under the latest Basel Accord capital adequacy ratio requirements. Building on previous studies, this research uses a simultaneous equation modeling (SiEM) with three-stage least squares regression (3SLS) to analyze the endogenous relationship between risk-based capital adequacy standards and bank risk management. A year dummy variable (dy2013) is included in the model to take account of changes in the regulation of the Vietnamese banking system. Furthermore, we add a value-at-risk variable developed by as an independent variable into equations of the empirical models. The results reveal a significant impact of Basel capital adequacy regulatory pressure on the risk-based capital adequacy standards and bank risk management of Vietnamese commercial banks. Moreover, banks under the latest Basel capital adequacy regulations are induced to reduce risks and increase banks’ financial performance.

scholarly journals The Role of Information Technology in Customer Satisfaction at the Commercial Banks in the State of Kuwait and the Kingdom of Bahrain

2020 ◽  
pp. 47-54
Author(s):  
Fawaz Alhammad
Keyword(s):  
Information Technology ◽  
Customer Satisfaction ◽  
Commercial Banks ◽  
The State ◽  
Questionnaire Data ◽  
Spss Software ◽  
The State Of Kuwait ◽  
The Impact ◽  
Role Of Information

This research intended to identify the role of Information Technology (IT)in customer satisfaction at the commercial banks in the State of Kuwait and the Kingdom of Bahrain. The study used the descriptive analytical approach and the questionnaire to measure the impact of IT on customer satisfaction. After distributing the questionnaire, data then were analyzed using SPSS software and we had the following results: There is no statistically significant impact for the availability of devices on customer satisfaction at the commercial banks in the State of Kuwait and the Kingdom of Bahrain. It was also revealed that there a statistically significant impact for software, databases, human resources, and networks on customer satisfaction at the commercial banks in the State of Kuwait and the Kingdom of Bahrain.

Capital regulation and ownership structure on bank risk

2019 ◽  
Vol 28 (1) ◽  
pp. 39-56 ◽  
Author(s):  
Aysa Siddika ◽  
Razali Haron
Keyword(s):  
Maximum Likelihood ◽  
Ownership Structure ◽  
Risk Taking ◽  
Commercial Banks ◽  
Dynamic Panel Data ◽  
Bank Risk ◽  
Capital Regulation ◽  
Content Type ◽  
Global Banking ◽  
The Impact

Purpose This paper aims to examine the impact of capital regulation, ownership structure and the degree of ownership concentration on the risk of commercial banks. Design/methodology/approach This study uses a sample of 565 commercial banks from 52 countries over the period of 2011-2015. A dynamic panel data model estimation using the maximum likelihood with structural equation modelling (SEM) was followed considering the panel nature of this study. Findings The study found that the increase of capital ratio decreases bank risk and the regulatory pressure increases the risk-taking of the bank. No statistically significant relationship between banks’ ownership structure and risk-taking was found. The concentration of ownership was found negatively associated with bank risk. Finally, the study found that in the long term, bank increases the capital level that decreases the default risk. Originality/value This study presents an empirical analysis on the global banking system focusing on the Basel Committee member and non-member countries that reflect the implementation of Basel II and Basel III. Therefore, it helps fill the gap in the banking literature on the effect of recent changes in the capital regulation on bank risk. Maximum likelihood with SEM addresses the issue of endogeneity, efficiency and time-invariant variables. Moreover, this study measures the risk by different proxy variables that address total, default and liquidity risks of the banks. Examining from a different perspective of risk makes the study more robust.

The state as owner—China’s experience

2020 ◽  
Vol 36 (2) ◽  
pp. 362-379 ◽  
Author(s):  
Curtis J Milhaupt
Keyword(s):  
Ownership Structure ◽  
State Ownership ◽  
The State ◽  
Business Enterprise ◽  
State Capitalism ◽  
Policy Makers ◽  
Corporate Form ◽  
Governance Challenges ◽  
Policy Objectives

Abstract This essay explores China’s experience with state ownership of business enterprise. After a short historical survey of the rise, fall, and re-emergence of the state-owned enterprise (SOE) as a form of business organization, the essay examines the creation, ownership structure, and role of SOEs under Chinese state capitalism. It further discusses the government’s ongoing efforts to reform its SOEs. These efforts are illuminating because they highlight the serious tension inherent in the party-state’s dual goals of maintaining SOEs as a tool for advancing non-financial social and industrial policy objectives, and addressing the corporate governance challenges of these enterprises. The essay concludes by examining implications from the preceding analysis—for China’s domestic economy, for policy-makers outside China, and for the corporate form itself.

scholarly journals Perception and Drivers of Financial Constraints for the Sustainable Development

2020 ◽  
Vol 12 (17) ◽  
pp. 7217
Author(s):  
Tamara Teplova ◽  
Tatiana Sokolova ◽  
Mariya Gubareva ◽  
Kristina Galenskaya ◽  
Andrey Teplov
Keyword(s):  
Sustainable Development ◽  
Financial Constraints ◽  
Institutional Environment ◽  
Academic Research ◽  
State Ownership ◽  
Policy Makers ◽  
The Sustainable Development ◽  
Debt Market ◽  
The Impact

Financial market imperfections constrain firms’ ability to obtain funds. This is especially true for the former communist bloc countries. However, the restrictions on access to financing and the attitudes of management in these geographies remain overlooked by academic research and represent an important obstacle on the roadmap to sustainable development. The objective of this paper is to fill this gap by analyzing the impact of ownership structure, institutional environment development, and debt market profile on the perception of financial constraints by the representatives of corporate top management from 28 countries of the former communist bloc. Our analysis spans over the period 2002–2013. We apply the probit and Heckman models to investigate nonlinear and multicast effects of the considered factors. We evidence that during the crisis and post-crisis periods, foreign ownership alleviates the restrictions on access to financial resources. We also discuss the role of state ownership. We find that the volume of local currency bond market has a nonlinear U-shape relationship. Our results are useful for policy makers focused on sustainable development of the former communist economies by means of improving access of businesses to financing.

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