Abstract

This research identifies factors that explain the liquidity of commercial banks in the Vietnam banking system from 2010 to 2015. Using the OLS regression method for analysis, it was found that:

1. the interbank market helps commercial banks improve their liquidity;

2. the larger the loan size, the higher the liquidity risk;

3. good credit risk management has a positive impact on liquidity risk management; and

4. long-term interest rate is negatively related to the liquidity of commercial banks.

The research also makes recommendations on liquidity risk management policies to banks and policy-makers from the Government and the State Bank of Vietnam.

Details

Title
The determinants of liquidity risk of commercial banks in Vietnam
Author
Tran, Tu T T  VIAFID ORCID Logo  ; Nguyen, Yen T; Thuy T.H. Nguyen  VIAFID ORCID Logo  ; Long, Tran
Pages
94-110
Section
Articles
Publication year
2019
Publication date
2019
Publisher
Business Perspectives Ltd.
ISSN
18167403
e-ISSN
19917074
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.21511/bbs.14(1).2019.09
ProQuest document ID
2317696477
Copyright
© 2019. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.