VGU RESEARCH REPOSITORY
Please use this identifier to cite or link to this item:
https://epub.vgu.edu.vn/handle/dlibvgu/690
Title: | Loan growth and bank risk: the case of Vietnam | Authors: | Truong Tien Dat | Keywords: | Loan growth;Bank risk;Banking | Issue Date: | 2017 | Publisher: | Vietnamese-German University | Abstract: | The main objective of this paper is how abnormal credit growth affects the riskiness of Vietnamese banks. Panel data comprises of 32 individual banks over the 2000-2016 period. Following Foos, Norden et al. (2010) model and method with suitable adjustment for the case of Viet Nam, I use three hypotheses to test the impact of abnormal loan growth on bank risk, profitability and solvency. I find that the abnormal credit expansion in the past year causes the decrease in credit losses in the current year. The second hypothesis result suggests that the abnormal loan growth have a negative impact on relative interest income at present. Finally, hypothesis 3 finding indicates that excessive credit growth lower bank equity to asset ratio, which is the solvency capability of bank. As a result, I suggest that abnormal credit growth is the powerful indicator to predict bank risk, especially for emerging economy like Viet Nam. |
URI(1): | http://epub.vgu.edu.vn/handle/dlibvgu/690 | Rights: | Attribution-NonCommercial 4.0 International |
Appears in Collections: | Finance & Accounting (FA) |
Files in This Item:
File | Description | Size | Format | Existing users please Login |
---|---|---|---|---|
Loan growth and bank risk - the case of Vietnam.pdf | 1.44 MB | Adobe PDF |
Page view(s)
57
checked on Jul 12, 2024
Download(s)
26
checked on Jul 12, 2024
Google ScholarTM
Check
This item is licensed under a Creative Commons License