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

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  • 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)

Abstract

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.

Suggested Citation

  • Nguyen Thanh Hung & Pham Phu Quoc, 2020. "State-ownership and bank risk: A case of Vietnamese commercial banks," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 10(2), pages 60-67.
    • Handle: RePEc:bjw:econen:v:10:y:2020:i:2:p:60-67
    DOI: 10.46223/HCMCOUJS.econ.en.10.2.965.2020
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    References listed on IDEAS

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    1. Cornett, Marcia Millon & Guo, Lin & Khaksari, Shahriar & Tehranian, Hassan, 2010. "The impact of state ownership on performance differences in privately-owned versus state-owned banks: An international comparison," Journal of Financial Intermediation, Elsevier, vol. 19(1), pages 74-94, January.
    2. Berger, Allen N. & Hasan, Iftekhar & Zhou, Mingming, 2009. "Bank ownership and efficiency in China: What will happen in the world's largest nation?," Journal of Banking & Finance, Elsevier, vol. 33(1), pages 113-130, January.
    3. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
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