The Impact of Monetary Policy on Insolvency Risk at Vietnamese Commercial Banks

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Mai Thi Phuong Thuy
Mai Thi Phuong Thuy

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GJMBR Volume 20 Issue C4

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The objective of our study was to evaluate, in a population of Togolese People Living With HIV(PLWHIV), the agreement between three scores derived from the general population namely the Framingham score, the Systematic Coronary Risk Evaluation (SCORE), the evaluation of the cardiovascular risk (CVR) according to the World Health Organization.
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The study assesses the impact of monetary policy on Vietnamese commercial banks’ insolvency risk during the 2008-2017 period, with balanced panel data for 30 commercial banks in Vietnam. Results from the study show that an increase in the M2 money supply creates an increase in the Z index, which means a reduction in the risk of insolvency. The expansionary monetary policy increases real estate prices, collateral value, and bank capital, resulting in higher asset value for the bank. As a result, both deposit growth and credit growth in the economy have positive signs; therefore, the activity of commercial banks results in efficiency and improved profit, reducing the risk of insolvency. This result is consistent with the Borio and Zhu (2012) reports.

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21 Cites in Articles

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Mai Thi Phuong Thuy. 2020. \u201cThe Impact of Monetary Policy on Insolvency Risk at Vietnamese Commercial Banks\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 20 (GJMBR Volume 20 Issue C4): .

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: E5, E52, E51
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v1.2

Issue date

September 22, 2020

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English

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The Impact of Monetary Policy on Insolvency Risk at Vietnamese Commercial Banks

Mai Thi Phuong Thuy
Mai Thi Phuong Thuy

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