BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY

This dissertation studies the level of bank competition, risk taking behaviour and their nexus in Vietnam. Based on a data set of commercial banks from 2011 to 2017, the results suggest a decrease in competition proxied by Lerner Index over the period and hint a slight increase in banks’ risk taking...

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Main Author: LA, THI KIM KHANH
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/54829/
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author LA, THI KIM KHANH
author_facet LA, THI KIM KHANH
author_sort LA, THI KIM KHANH
building Nottingham Research Data Repository
collection Online Access
description This dissertation studies the level of bank competition, risk taking behaviour and their nexus in Vietnam. Based on a data set of commercial banks from 2011 to 2017, the results suggest a decrease in competition proxied by Lerner Index over the period and hint a slight increase in banks’ risk taking estimated by Z-score. The dissertation agrees with the “competition-stability” hypothesis and shows evidence supporting the “too-big-to-fail” theory, as larger banks tend to take more risks in this market. Moreover, the empirical results in Vietnam indicate a deviation from Structure-Conduct-Performance hypothesis and non-structural indicator appears to be better in reflecting market power than the structural one. Foreign ownership, still limited by the government, does not make significant changes on the stability. Meanwhile, state-controlled banks are supposed to stabilise the banking system with a low level of market power. Overall, this dissertation provides important implications for bank restructuring, competition and regulatory framework in Vietnam.
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spelling nottingham-548292022-11-25T15:38:03Z https://eprints.nottingham.ac.uk/54829/ BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY LA, THI KIM KHANH This dissertation studies the level of bank competition, risk taking behaviour and their nexus in Vietnam. Based on a data set of commercial banks from 2011 to 2017, the results suggest a decrease in competition proxied by Lerner Index over the period and hint a slight increase in banks’ risk taking estimated by Z-score. The dissertation agrees with the “competition-stability” hypothesis and shows evidence supporting the “too-big-to-fail” theory, as larger banks tend to take more risks in this market. Moreover, the empirical results in Vietnam indicate a deviation from Structure-Conduct-Performance hypothesis and non-structural indicator appears to be better in reflecting market power than the structural one. Foreign ownership, still limited by the government, does not make significant changes on the stability. Meanwhile, state-controlled banks are supposed to stabilise the banking system with a low level of market power. Overall, this dissertation provides important implications for bank restructuring, competition and regulatory framework in Vietnam. 2018-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54829/1/Dissertation%20-%20Thi%20Kim%20Khanh%20La%20-%204307854%20-%20MSc%20Banking%20and%20Finance.pdf LA, THI KIM KHANH (2018) BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY. [Dissertation (University of Nottingham only)] Banking industry competition risk Lerner Index Z-score
spellingShingle Banking industry
competition
risk
Lerner Index
Z-score
LA, THI KIM KHANH
BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY
title BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY
title_full BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY
title_fullStr BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY
title_full_unstemmed BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY
title_short BANK COMPETITION AND RISK TAKING: EMPIRICAL EVIDENCE FROM VIETNAMESE BANKING INDUSTRY
title_sort bank competition and risk taking: empirical evidence from vietnamese banking industry
topic Banking industry
competition
risk
Lerner Index
Z-score
url https://eprints.nottingham.ac.uk/54829/