The Effects of Booming Credit Growth on the Soundness of Commercial Banks: Empirical Research with the Case of Vietnam
Journal Title: Journal of Economics and Business - Year 2018, Vol 1, Issue 4
Abstract
The research aims at investigating the impacts of rapid credit growth in Vietnam, that is called booming period occurred from 2007 to 2010, on the soundness of the Vietnamese commercial banks with quantitative methods. By using bank data collected from 18 major commercial banks from 2007 to 2013, the quantitative method is reflected through a strong regression model linking with variables for both microeconomic and macroeconomic factors. The influence of the credit boom was examined on basic aspects as asset quality, profitability, liquidity, capital adequacy. The findings seld lights on is that rapid credit growth weakens commercial banks on both sounder and less sound banks. Moreover, the findings also witnessed the relationship among rapid credit expansion and soundness of commercial banks, taking account the crucial role of bank performance as a determinant of credit growth.
Authors and Affiliations
Do Hoai Linh, Phan Anh Khoa
Keywords
Related Articles
- EP ID EP437458
- DOI 10.31014/aior.1992.01.04.56
- Views 73
- Downloads 0
An Evaluation of Mandatory Audit Firm Rotation in South Africa
Following on recent corporate failures, various initiatives are introduced to restore confidence in the audit function. In this regard, the Independent Regulatory Board for Auditors of South Africa announced its plans to...
The Relationship Between Board Diversity, Ownership Structure and Bank Performance In Tunisian Market
This research focuses on the impact of internal governance mechanisms on the performance of listed Tunisian banks during the period 2005-2016. We try to detect the impact of banking governance, not only through the owner...
Some Issues on Vietnam Economy
Vietnam's economy in innovation has experienced many great achievements. The distance calculated according to the ratio of economic scale, export promotion, attraction of foreign direct investment capital, job creation f...
Digital Marketing in Banking Activities – Suggestions for Vietnam Banks from International Experiences
Based on the innovation of science and technology in a fierce competitive environment, digital marketing has emerged as an inevitable trend for businesses with no exception from banking areas. With the target of reaching...
Entrepreneurs Experience and Firm Innovativeness: Multiple Mediation of Attitudinal and Behavioral Competencies
This study was anchored on a postpositivism paradigm and the Theory of perceived attributes and individual innovativeness, regarding the multiple serial mediations of attitudinal and behavioral competencies in the relati...