Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks
This article aims to analyze the interbank lending adjustment during the period when Vietnamese commercial banks are compliant with some parts of the Basel regulation framework. A pilot regulation period has started in 2011 and full application will be effective by the end of 2018. Partial adjustmen...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Centre of Sociological Research, Szczecin, Poland
2017-10-01
|
| Series: | Journal of International Studies |
| Subjects: | |
| Online Access: | http://jois.eu/?356,en_adjustment-of-interbank-lending-in-pre-and-post-regulation-periods-empirical-analysis-of-vietnamese-commercial-banks |
| _version_ | 1811203928351571968 |
|---|---|
| author | Ho Thanh Tung |
| author_facet | Ho Thanh Tung |
| author_sort | Ho Thanh Tung |
| collection | DOAJ |
| description | This article aims to analyze the interbank lending adjustment during the period when Vietnamese commercial banks are compliant with some parts of the Basel regulation framework. A pilot regulation period has started in 2011 and full application will be effective by the end of 2018. Partial adjustment models and variance decomposition are used for the analyses. In the analysis of the quarterly released financial statements of Vietnamese commercial banks in the period from 2008/Q1 to 2015/Q4, the empirical evidence showed that throughout the period, lending to non-bank and high liquidity assets contributed to the adjustment in both long run and short run with a negative association. In addition, the loan loss allowance contributed to the adjustment in the post-regulation period only with a positive association. These highly contributing factors also show a potential shock after the adjustment of the interbank lending. The results imply there is a need for interbank lending portfolio report and an efficient control over the IRB of Vietnamese commercial banks. |
| first_indexed | 2024-04-12T03:03:05Z |
| format | Article |
| id | doaj.art-af4a165064dc489aadb65b4b2c3c8c29 |
| institution | Directory Open Access Journal |
| issn | 2071-8330 2306-3483 |
| language | English |
| last_indexed | 2024-04-12T03:03:05Z |
| publishDate | 2017-10-01 |
| publisher | Centre of Sociological Research, Szczecin, Poland |
| record_format | Article |
| series | Journal of International Studies |
| spelling | doaj.art-af4a165064dc489aadb65b4b2c3c8c292022-12-22T03:50:36ZengCentre of Sociological Research, Szczecin, PolandJournal of International Studies2071-83302306-34832017-10-0110310.14254/2071-8330.2017/10-3/5Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banksHo Thanh Tung0Tomas Bata University in Zlin, Ton Duc Thang UniversityThis article aims to analyze the interbank lending adjustment during the period when Vietnamese commercial banks are compliant with some parts of the Basel regulation framework. A pilot regulation period has started in 2011 and full application will be effective by the end of 2018. Partial adjustment models and variance decomposition are used for the analyses. In the analysis of the quarterly released financial statements of Vietnamese commercial banks in the period from 2008/Q1 to 2015/Q4, the empirical evidence showed that throughout the period, lending to non-bank and high liquidity assets contributed to the adjustment in both long run and short run with a negative association. In addition, the loan loss allowance contributed to the adjustment in the post-regulation period only with a positive association. These highly contributing factors also show a potential shock after the adjustment of the interbank lending. The results imply there is a need for interbank lending portfolio report and an efficient control over the IRB of Vietnamese commercial banks.http://jois.eu/?356,en_adjustment-of-interbank-lending-in-pre-and-post-regulation-periods-empirical-analysis-of-vietnamese-commercial-banksbank regulationcapital regulationBasel regulationinterbank lendingadjustment speedVietnamese commercial banks |
| spellingShingle | Ho Thanh Tung Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks Journal of International Studies bank regulation capital regulation Basel regulation interbank lending adjustment speed Vietnamese commercial banks |
| title | Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks |
| title_full | Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks |
| title_fullStr | Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks |
| title_full_unstemmed | Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks |
| title_short | Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks |
| title_sort | adjustment of interbank lending in pre and post regulation periods empirical analysis of vietnamese commercial banks |
| topic | bank regulation capital regulation Basel regulation interbank lending adjustment speed Vietnamese commercial banks |
| url | http://jois.eu/?356,en_adjustment-of-interbank-lending-in-pre-and-post-regulation-periods-empirical-analysis-of-vietnamese-commercial-banks |
| work_keys_str_mv | AT hothanhtung adjustmentofinterbanklendinginpreandpostregulationperiodsempiricalanalysisofvietnamesecommercialbanks |