Excess Liquidity and Bank Stability: Empirical Evidence in Vietnam
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
Purpose: The article has developed a research model to measure the effect of liquidity and excess liquidity on bank stability. Design/methodology/approach: Other variables such as bank size, loan growth, economic state, and inflation are also incorporated into the research model to ascertain the degree of impact on the stability of banks. To achieve the research goal, data was taken from 28 Vietnamese commercial banks in the period from 2010 to 2022, using quantitative research methods and linear regression models. Findings: According to research findings, managers are more likely to engage in moral hazard-related behavior when there is excess liquidity available because they are more willing to take on greater risks when making credit or investment decisions. Research limitations/implications: According to the research findings, excess liquidity has an adverse impact on Vietnam's banking system's stability. Since managers are more likely to take on greater risks when making credit or investment decisions when there is excess liquidity, this can lead to moral hazard-related behavior. However, the research is also limited because it is not possible to compare this relationship between different types of banks and compare it with other nations due to data limitations. Originality/value: The research has important implications for policymakers and administrators in liquidity management to increase bank stability.
Abstract
Purpose: The article has developed a research model to measure the effect of liquidity and excess liquidity on bank stability. Design/methodology/approach: Other variables such as bank size, loan growth, economic state, and inflation are also incorporated into the research model to ascertain the degree of impact on the stability of banks. To achieve the research goal, data was taken from 28 Vietnamese commercial banks in the period from 2010 to 2022, using quantitative research methods and linear regression models. Findings: According to research findings, managers are more likely to engage in moral hazard-related behavior when there is excess liquidity available because they are more willing to take on greater risks when making credit or investment decisions. Research limitations/implications: According to the research findings, excess liquidity has an adverse impact on Vietnam's banking system's stability. Since managers are more likely to take on greater risks when making credit or investment decisions when there is excess liquidity, this can lead to moral hazard-related behavior. However, the research is also limited because it is not possible to compare this relationship between different types of banks and compare it with other nations due to data limitations. Originality/value: The research has important implications for policymakers and administrators in liquidity management to increase bank stability.
참고문헌 (45)
- Abedifar, P., "Non-interest income and bank lending", Journal of Banking and Finance, 87, pp.411~426 (2018)[DOI]
- Acharya, V., "The seeds of a crisis : A theory of bank liquidity and risk taking over the business cycle", Journal of Financial Economics, 106(2), pp.349~366 (2012)[DOI]
- Agénor, P., "Discussion Paper Series Excess Liquidity, Bank Pricing Rules, and Monetary Policy By Download paper from : Excess Liquidity, Bank Pricing Rules, and Monetary Policy", Journal of Banking & Finance, 34(5), pp.923~933 (2010)
- Ahmad, S., "Is excess of everything bad? Ramifications of excess liquidity on bank stability : Evidence from the dual banking system", Borsa Istanbul Review, 22, pp.S92~S107 (2022)[DOI]
- Alshubiri, F. N., "Determinants of financial stability : An empirical study of commercial banks listed in Muscat Security Market", Journal of Business and Retail Management Research, 11(4), pp.192~200 (2017)[DOI]
- Ashraf, D., "A net stable funding ratio for Islamic banks and its impact on financial stability : An international investigation", Journal of Financial Stability, 25, pp.47~57 (2016)[DOI]
- Blundell, R., "Initial conditions and moment restrictions in dynamic panel data models", Journal of Econometrics, 234, pp.38~55 (1998)[DOI]
- Bokhari, E., "What Determines Saudi Arabia's Development Finance? An Empirical Approach I", Global Business & Finance Review, 5, pp.42~54 (2022)
- Buallay, A., "Sustainability reporting and bank performance after financial crisis : Evidence from developed and developing countries", Competitiveness Review, 31(4), pp.747~770 (2020)[DOI]
- Calcagnini, G., "Does too much liquidity generate instability?", Journal of Economic Interaction and Coordination, 17(1), pp.191~208 (2022)[DOI]
- Chehayeb, R. J., "Measuring Financial Inclusion in the MENA Region: Comparative Analysis", Global Business &Finance Review, 3, pp.81~93 (2024)
- D'Avino, C., "Bank liquidity creation: A new global dataset for developing and emerging countries", Review of World Economics, 158(2) (2022), Springer Berlin Heidelberg[DOI]
- Dei Ofosu-Hene, E., "Risk management and performance of listed banks in Ghana", European Journal of Business Science and Technology, 6(2), pp.107~121 (2016)
- Demiralp, S., "Negative interest rates, excess liquidity and retail deposits:Banks' reaction to unconventional monetary policy in the euro area", European Economic Review, 136, pp.103745~ (2021)[DOI]
- Demirgüç-Kunt, A., "Determinants of commercial bank interest margins and profitability : Some international evidence", World Bank Economic Review, 13(2), pp.379~408 (1999)[DOI]
- Filipos, R., "Examining the Relationship between Bank Profitability and Economic Growth : Insights from Central and Eastern Europe", Global Business Finance Review, 29(1), pp.31~43 (2024)[DOI]
- Giolongo, D., "Liquidity Provision on Demand in the Argentine Banking System", Emerging Markets Finance and Trade, 55(3), pp.634~654 (2019)[DOI]
- Goetz, M. R., "Competition and bank stability", Journal of Financial Intermediation, 35, pp.57~69 (2018)[DOI]
- Goetz, M. R., "Competition and bank stability", Journal of Financial Intermediation, 35(559), pp.57~69 (2018)[DOI]
- Gupta, J., "Financial stability of banks in India: Does liquidity creation matter?", Pacific Basin Finance Journal, 64, pp.101439~ (2020)[DOI]
- Hassan, M. K., "Liquidity risk, credit risk and stability in Islamic and conventional banks", Research in International Business and Finance, 48, pp.17~31 (2019)[DOI]
- Ibrahim, M. H., "Structural changes, competition and bank stability in Malaysia's dual banking system", Economic Systems, 43(1), pp.111~129 (2019)[DOI]
- Ji, H., "The value relevance and reliability of intangible assets : Evidence from South Korea", Global Business and Finance Review, 23(2), pp.98~107 (2018)[DOI]
- Khan, H. H., "Bank competition and monetary policy transmission through the bank lending channel : Evidence from ASEAN", International Review of Economics and Finance, 44, pp.19~39 (2016)[DOI]
- Kim, H., "Financial c risis, bank diversification, and financial stability: OECD countries", International Review of Economics and Finance, 65, pp.94~104 (2019)[DOI]
- Konara, P., "FDI and heterogeneity in bank efficiency : Evidence from emerging markets", Research in International Business and Finance, 49, pp.100~113 (2019)[DOI]
- Le, T. D. Q., "The interrelationship among bank profitability, bank stability, and loan growth : Evidence from Vietnam", Cogent Business and Management, 7(1) (2020)[DOI]
- Lee, H. A., "A Study on Earnings Management of Zero-leverage Firms from the Perspective of Financial Constraints", Global Business and Finance Review, 27(1), pp.28~49 (2022)[DOI]
- Lee, J. H., "Measures of systemic risk and financial fragility in Korea", Annals of Finance, 9(4), pp.757~786 (2013)[DOI]
- Li, Z., "Predicting the risk of financial distress using corporate governance measures", Pacific Basin Finance Journal, 68, pp.101334~ (2021)[DOI]
- Louhichi, A., "Bank capital, lending and financing behaviour of dual banking systems", Journal of Multinational Financial Management, 41, pp.61~79 (2017)[DOI]
- Markowitz, H., "Foundations of portfolio theory", Journal of Finance, 46(2), pp.469~477 (1991)
- Mercieca, S., "Small European banks : Benefits from diversification", Journal of Banking & Finance, 44, pp.0~30 (2005)
- Modigliani, F., "Liquidity preference and the theory of interest and money. Econometrica", Journal of the Econometric Society, 12(1), pp.45~88 (1944)
- Musembi, G. R., "Long-run relationships among financial development, financial inclusion, and economic growth : Empirical evidence from Kenya", Global Business and Finance Review, 25(4), pp.1~11 (2020)[DOI]
- O'Brien, R. M., "A caution regarding rules of thumb for variance inflation factors", Quality and Quantity, 41(5), pp.673~690 (2007)[DOI]
- Ozili, P. K., "Linking bank competition, financial stability, and economic growth", Ournal of Business Economics and Management, 21(1), pp.200~221 (2018)[DOI]
- Ozili, P. K., "Bank loan loss provisioning for sustainable development: the case for a sustainable or green loan loss provisioning system", Journal of Sustainable Finance & Investment, pp.115989~ (2023)[DOI]
- Rizvi, N. U., "Basel I to Basel III: Impact of Credit Risk and Interest Rate Risk of Banks in India", Journal of Emerging Market Finance, 17(1_suppl), pp.S83~S111 (2018)[DOI]
- Shie, F. S., "Prediction of corporate financial distress : An application of the America banking industry", Neural Computing and Applications, 21(7), pp.1687~1696 (2012)[DOI]
- Smaoui, H., "Funding liquidity risk and banks' risk-taking : Evidence from Islamic and conventional banks", Pacific Basin Finance Journal, 64, pp.101436~ (2020)[DOI]
- Thakor, B., "Can Relationship Banking Survive Competition", The Journal of Finace, 55(2), pp.679~173 (2000)[DOI]
- Valla, N., "Bank liquidity and financial stability", Banque de France Financial Stability Review, 9(1), pp.89~104 (2006)
- Viphindrartin, S., "Effects of bank macroeconomic indicators on the stability of the financial system in Indonesia", European Journal of Biochemistry, 8(4), pp.647~654 (2021)[DOI]
- Wagner, W., "The liquidity of bank assets and banking stability", Journal of Banking and Finance, 31(1), pp.121~139 (2007)[DOI]