How market concentration and liquidity affect non-performing loans: evidence from Vietnam

• Autorzy: Tran Oanh Kim Thi , Nguyen Diep Van , Duong Khoa Dang

Identyfikatory

DOI

10.17512/pjms.2022.26.1.20

Warianty tytułu

PL

Jak koncentracja rynku i płynność wpływają na kredyty zagrożone : dowód z Wietnamu

• Języki publikacji: EN

Abstrakty

EN

The present study is the first to estimate the impacts of market concentration and liquidity on the non-performing loans in Vietnam, a transitional economy in Asia. This research is unique because government-owned banks secure unprecedented market power against private banks in Vietnam. The data is collected from 33 Vietnamese banks from 2009 to 2020. The study employs the Random Effect Models and the two-step system Generalized Method of Moments to analyze the results. The empirical findings document an inversed relationship between market concentration and non-performing loans. Specifically, when the Herfindahl-Hirschman Index increases by one point, the non-performing loans ratio reduces by 0.1%. However, the non-performing loans of commercial banks in Vietnam are positively empowered by liquidity. The findings of the study imply that a percentage increase in bank funding diversity and liquidity creation cause non-performing loans to rise by 0.52% and 0.3%, respectively. The results are supported by the bank concentration and stability theory, the "too-big-to-fail" hypothesis, and prior literature. The study outcomes are relevant for policymakers to develop banking system stability. The present study also provides recommendations for bank managers and policymakers to control the non-performing loans of commercial banks. The authors suggest future studies explore this topic across the country to generalize in-depth insights.

PL

Niniejsze badanie jest pierwszym, w którym oszacowano wpływ koncentracji rynku i płynności na kredyty zagrożone w Wietnamie, gospodarce w Azji w okresie przejściowym. Badanie jest unikalne , ponieważ banki będące własnością rządu zabezpieczają bezprecedensową siłę rynkową wobec banków prywatnych w Wietnamie. Dane zebrano z 33 wietnamskich banków w latach 2009-2020. W badaniu wykorzystano modele efektów losowych i dwustopniowy system uogólnionej metody momentów do analizy wyników. Wyniki badań empirycznych dokumentują odwrotną zależność między koncentracją na rynku a kredytami zagrożonymi. W szczególności, gdy indeks Herfindahla-Hirschmana wzrastao jeden punkt, wskaźnik kredytów zagrożonych zmniejsza się o 0,1%. Jednakże, zagrożone kredyty banków komercyjnych w Wietnamie są pozytywnie wzmacniane przez płynność. Wyniki badania sugerują, że procentowy wzrost zróżnicowania finansowania banków i tworzenia płynności powoduje wzrost kredytów zagrożonych odpowiednio o 0,52% i 0,3%. Wyniki są poparte teorią koncentracji i stabilności banków, hipotezą „zbyt duży, by upaść” oraz wcześniejszą literaturą. Wyniki badań są istotne dla decydentów politycznych w zakresie rozwoju stabilności systemu bankowego. Niniejsze badanie zawiera również zalecenia dla menedżerów banków i decydentów dotyczące kontroli kredytów zagrożonych w bankach komercyjnych. Autorzy sugerują, że przyszłe badania ten temat prowadzone były w całym kraju, aby uogólnić dogłębne spostrzeżenia.

Słowa kluczowe

EN

bank liquidity; non-performing loans; bank funding diversity

PL

płynność banków; HHI; kredyty zagrożone; zróżnicowanie finansowania banków

• Wydawca: Czestochowa University of Technology
• Czasopismo: Polish Journal of Management Studies
• Rocznik: 2022
• Tom: Vol. 26, No. 1
• Strony: 325--337
• Opis fizyczny: Bibliogr. 31 poz., tab.

Twórcy

autor

Tran Oanh Kim Thi

• Faculty of Finance and Banking, University of Finance - Marketing, Ho Chi Minh City, Vietnam

• https://orcid.org/0000-0003-0118-1248

autor

Nguyen Diep Van

• Faculty of Finance and Banking, Ho Chi Minh City Open University, Ho Chi Minh City, Vietnam

• https://orcid.org/0000-0002-5222-2516

autor

Duong Khoa Dang

• Faculty of Finance and Banking, Ton Duc Thang University, Ho Chi Minh City, Vietnam

• https://orcid.org/0000-0001-9855-3751

Bibliografia

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Uwagi

Opracowanie rekordu ze środków MEiN, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2022-2023).