IMPACT OF LENDING STRUCTURE ON CREDIT RISK IN VIETNAMESE COMMERCIAL BANKS
Keywords:
Lending structure, industrial sector, Vietnamese commercial bank, credit risk
Abstract
This study examines whether lending structure concentration leads to lower credit risk by employing GMM estimators of panel data for the Vietnamese banking system at the bank level by economic sector from 2009 to 2016. The advance point of this research is the effect of different industrial sector variables on credit risk. An important finding is that the Vietnamese commercial bank lending portfolios have, on average, higher levels of diversity across different sectors. Overall, the research finds that an increase in the mining and quarrying, manufacturing, electricity, gas and water, construction and real estate lending will contribute to the bank’s exposures to credit risk, while the lending portfolio of banks in wholesale and retail trade and other sectors reduces credit risk. This study suggests recommendations in lending activity for maintaining efficiency and stability in Vietnamese commercial banking system.
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income the answer? Journal of Money, Credit and
Banking. 2004;36(5):853–882.
– 2013. Tạp chí Tài chính. 2013;12. Truy cập từ:
http://tapchitaichinh.vn/nghien-cuu–trao-doi/trao-doibinh-luan/buc-tranh-no-xau-giai-doan-2011-2013-
39689.html [Truy cập ngày: 01/7/2018].
[2] Công ti chứng khoán Ngân hàng TMCP Ngoại
Thương Việt Nam. Báo cáo ngành ngân hàng 2017;
2017.
[3] Thời báo Tài chính Việt Nam. Thận trọng
với tăng trưởng tín dụng; 2018. Truy cập từ:
http://thoibaotaichinhvietnam.vn/pages/tien-te-baohiem/2017-07-28/than-trong-voi-tăng-truong-tindung-45963.aspx [Truy cập ngày: 28/7/2018].
[4] Abdul-Rahman. Lending Structure and Bank Risk: A
Case of Islamic Banking System in Malaysia. Asian
Academy of Management Journal of Accounting and
Finance (AAMJAF). 2010;6(1):47–67.
[5] Tabak B M, Fazio D M, Cajueiro D O. The effects
of loan portfolio concentration on Brazilian banks’
return and risk. Journal of Banking & Finance.
2011;35(11):3065–3076.
[6] Rossi S P S, Schwaiger M S, Winkler G. How
loan portfolio diversification affects risk, efficiency
and capitalization: A managerial behavior model for
Austrian banks. Journal of Banking & Finance.
2009;32(12):2218–2226.
[7] Acharya V, Hasan I, Saunders A. Should banks
be diversified?" Evidence from individual bank loan
portfolios. Journal of Business. 2006;79(3):1355–
1412.
[8] Batten J A, Vo X V. Bank risk shifting and diversification in an emerging market. Risk Management.
2016;18(4):217–235.
[9] Phan Thị Thơm, Thân Thị Thu Thủy. Mối quan hệ
giữa cạnh tranh và hiệu quả trong hệ thống ngân hàng
thương mại Việt Nam. Tạp chí Công nghệ Ngân hàng.
2016 01+02;118+119.
[10] The Basel Committee on Banking Supervision.
Basel II: The New Basel Capital Accord. Bank
for international settlements. 2003;Truy cập từ:
https://www.bis.org/bcbs/bcbscp3.pdf [Truy cập ngày:
28/7/2018].
[11] Ozili P K, Outa E. Bank loan loss provisions: A
review. Borsa Istanbul Review. 2017;17(3):144–163.
[12] Markowitz H M. Portfolio selection: efficient diversification of Investments. New York: John Wiley. 1959;.
[13] Diamond D W. Financial intermediation and delegated monitoring. The review of Economic Studies.
1984;51(3):393–414.
[14] Tirole J. The theory of Corporate Finance. The
United Kingdom: Princeton University Press; 2006.
[15] Winton A. Do not Put All Your Eggs in One Basket? Diversification and Specialization in Lending.
Center for Financial Institutions Working Papers 00-
16, Wharton School Center for Financial Institutions,
University of Pennsylvania. 1999;.
[16] Silva T C, Da Silva M A, Tabak B M. Bank Lending
and Systemic Risk: A financial-real sector network
approach with feedback. Journal of Financial Stability. 2018;38:98–118.
[17] Batten J A, Vo X V. Foreign ownership in emerging
stock markets. Journal of Multinational Financial
Management. 2015;p. 32–33:15–24.
[18] Abdul-Rahman A, Sulaiman A A, Mohd Said N L H.
Does financing structure affect bank liquidity risk?
Pacific-Basin Finance Journal. 2018;52:26–39.
[19] Chen Y, Wei X, Zhàng L. A New Measurement of the
Sectoral Concentration of Credit Portfolios. Procedia
Computer Science. 2013;17:1231–1240.
[20] Berger P G, Minnis M, Sutherland A. Evidence from
borrower financial statements. Journal of Accounting
and Economics. 2017;64(2-3):253–277.
[21] Lê Mỹ. “Lệch pha” cho vay ngắn hạn; 2016.
Truy cập từ: http://enternews.vn/lech-pha-cho-vayngan-han-101320.html [Truy cập ngày: 31/8/2016].
[22] Ngân hàng Nhà nước Việt Nam. Thông tư số 39/TTNHNN ban hành ngày 30/12/2016 quy định về hoạt
động cho vay của tổ chức tín dụng, chi nhánh ngân
hàng nước ngoài đối với khách hàng.; 2016.
[23] Levin A, C F Lin, C S J Chu. Unit root tests in
panel data: Asymptotic and finite-sample properties.
Journal of Econometrics. 2002;108(1):1–24.
[24] Arellano M, Bover O. Another look at the
instrumental-variable estimation of errorcomponents
models. Journal of Econometrics . 1995;68:29–52.
[25] Tamiris N T I DO. Credit Growth and Bank Soundness in Emerging Europe. IMF Working Paper. 2007;.
[26] Lepetit L, Nys E, Rous P, Tarazi A. Bank analytical and risk analysis: An empirical analysis of
European banks. Journal of Banking & Finance.
2008;4(1):222–237.
[27] Stiroh K. Diversification in banking: Is non-interest
income the answer? Journal of Money, Credit and
Banking. 2004;36(5):853–882.
Published
01-September-2018
How to Cite
1.
Le D, Diep T. IMPACT OF LENDING STRUCTURE ON CREDIT RISK IN VIETNAMESE COMMERCIAL BANKS. journal [Internet]. 1Sep.2018 [cited 22Dec.2024];8(31):1-. Available from: https://journal.tvu.edu.vn/tvujs_old/index.php/journal/article/view/2
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