Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic

This study empirically explores the effects of bank funding diversity on Vietnamese commercial banks' profitability and risk in the context of the COVID-19 pandemic. The panel regression method was used to analyze quarterly data from 27 Vietnamese commercial banks from Q1-2016 to Q1-2021. The s...

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Bibliographic Details
Published inCogent business & management Vol. 10; no. 1; pp. 1 - 21
Main Authors Pham, Manh Hung, Nguyen, Nhat Minh
Format Journal Article
LanguageEnglish
Published Abingdon Taylor & Francis 31.12.2023
Cogent
Taylor & Francis Ltd
Taylor & Francis Group
Subjects
Bailouts
Banking industry
Banks
Commercial banks
COVID-19
Diversification
Economic growth
Efficiency
Funding
funding diversity
Industrialized nations
Longitudinal studies
Market shares
Pandemics
panel data
Profitability
risk
Vietnam
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Summary:This study empirically explores the effects of bank funding diversity on Vietnamese commercial banks' profitability and risk in the context of the COVID-19 pandemic. The panel regression method was used to analyze quarterly data from 27 Vietnamese commercial banks from Q1-2016 to Q1-2021. The study findings demonstrate that commercial banks with diverse financing sources are more profitable and riskier. In the meanwhile, the COVID-19 outbreak did not diminish the short-term profitability of Vietnamese commercial banks, but it did increase their exposure to risk. On the basis of the empirical findings, this paper also proposes a number of strategies to assist Vietnamese commercial banks in operating more effectively and securely in the context of the COVID-19 pandemic.
ISSN:2331-1975
2331-1975
DOI:10.1080/23311975.2023.2191305