ARTICLE
TITLE

The Impact of Funding Liquidity on Risk-taking Behaviour of Vietnamese Banks: Approaching by Z-Score Measure

SUMMARY

The study analyses the impact of funding liquidity risk on risk-taking behaviour of Vietnamese commercial banks from 2002 to 2016, using the systematic GMM estimation method. The main finding is that liquidity risk (represented by deposit ratio) has a negative correlation to risk-taking behaviour (captured by Z-score. The study also examines the effects of a big bank and financial crisis on the relationship between liquidity risk and the risk-taking behaviour of banks. The results suggest that big banks will have lower risk-taking behaviour than small banks when the liquidity risk of banks is still low. However, the study cannot find the empirical statistic evidence to confirm impact of funding liquidity risk and risk-taking behaviour in during a global financial crisis. Our results are consistent with all estimation equations with or without attendance of macroeconomic factors.Keywords: Liquidity, Risk, Behaviour, Vietnamese banks, Z-score.JEL Classifications: C23, G21, G40

PAGES
pp. 29 - 35
COLLECTIONS
Economy

 Articles related

Wati Hermawati,Ishelina Rosaira,Radot Manalu,Agus Santoso,Saut Siahaan    

This paper relates to outcome and impact based evaluation (OIBE) of a research program implementation at an Indonesian public research institute (PRI) ‘A’. The major funding for PRIs in Indonesia comes from government. It is  very essential therefor... see more


Marcia Siqueira Rapini, Tulio Chiarini, Pablo Bittencourt, Thiago Caliari    

Abstract Purpose – The purpose of this paper is to investigate the academic side of university–firm linkages, reporting the results of research (called the “BR Survey”, a primary database) conducted in Brazil with leaders of research groups that interact... see more


Narsaiah Neralla    

The demonetisation footstep by the Government of India twisted complicated influences in the economy. Complete sectors of the economy had faced and produced mixed sensation results over the decision of demonetisation. India’s financial services struggled... see more


Muhammed Hasan Yilmaz    

In this study, we investigate factors affecting net interest margin (NIM) of commercial banks in Turkey. Especially, our results highlight the relation between unconventional monetary policy shocks and bank margins. To this end, first, we conduct an iden... see more


Mustica Bintang Sabiti,Jaenal Effendi    

The purpose of this paper is to identify the effectiveness of Islamic microfinance institutions and their impact on poverty reduction in two types of rural areas in the district of Bogor, Indonesia. This research uses descriptive analysis, using a likert... see more

Revista: Signifikan