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Monetary Policy and Bank Credit Risk in Vietnam Pre and Post Global Financial Crisis

Risk Management Post Financial Crisis: A Period of Monetary Easing

ISBN: 978-1-78441-027-8, eISBN: 978-1-78441-026-1

Publication date: 1 October 2014

Abstract

A thorough understanding of transmission mechanism is a key to a successful conduct of monetary policy. This chapter attempts to improve knowledge in this respect by examining the impacts of commercial bank risks on the transmission of monetary policy. We investigate the impact of monetary policy on bank risk in Vietnam pre and post 2008 global financial crisis employing a unique and disaggregated bank level data set from 2003 to 2012. The results of panel data estimation indicate that the bank lending channel of monetary is evidenced in Vietnam. In addition, we find that the transmission mechanism is affected by characteristics of commercial banks.

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Acknowledgements

Acknowledgment

The authors wish to thank the Editors, Professor Jonathan A. Batten and Professor Nicklas F. Wagner, for their many helpful comments and suggestions which greatly enhance the brevity and quality of the chapter. We are grateful for the financial support from the University of Economics, Ho Chi Minh City, in conducting this research. Any remaining errors are of course our own responsibility.

Citation

Vo, X.V. and Nguyen, P.C. (2014), "Monetary Policy and Bank Credit Risk in Vietnam Pre and Post Global Financial Crisis", Risk Management Post Financial Crisis: A Period of Monetary Easing (Contemporary Studies in Economic and Financial Analysis, Vol. 96), Emerald Group Publishing Limited, Leeds, pp. 277-290. https://doi.org/10.1108/S1569-375920140000096011

Publisher

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Emerald Group Publishing Limited

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