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Risk management of the Vietnamese banking system: A market research survey

Author

Listed:
  • Matousek, Roman

    (University of Kent)

  • Nguyen, Thao Ngoc

    (Nottingham Trent University)

  • Stewart, Chris

    (Kingston University London)

Abstract

The purpose of this paper is to examine risk management of the Vietnamese banking system. This is the first such study of the Vietnamese banking system. To be able to carry out a comparative analysis and provide policy recommendations for risk management, we carry out an original survey of Vietnamese commercial banks using a questionnaire. 42% of the interviewees are General/Deputy General Directors and 58% are Heads/Deputies of a risk management department. The Kruskal-Wallis, Pearson chi-square and other tests are employed to examine the relationship between risk management and bank efficiency. The survey results indicate that there is a difference between banks in terms of risk area identification, risk intensification methods prioritised, risk monitoring methods, efficiency improvement suggestions, awareness of other banks’ risk management systems and credit risk analysis.

Suggested Citation

  • Matousek, Roman & Nguyen, Thao Ngoc & Stewart, Chris, 2016. "Risk management of the Vietnamese banking system: A market research survey," Economics Discussion Papers 2016-10, School of Economics, Kingston University London.
    • Handle: RePEc:ris:kngedp:2016_010
    as

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    File URL: http://eprints.kingston.ac.uk/35367/1/2016_010.pdf
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    References listed on IDEAS

    as
    1. Hameeda Abu Hussain, 2012. "Risk management practices of conventional and Islamic banks in Bahrain," Journal of Risk Finance, Emerald Group Publishing, vol. 13(3), pages 215-239, May.
    2. Stewart, Chris & Matousek, Roman & Nguyen, Thao Ngoc, 2016. "Efficiency in the Vietnamese banking system: A DEA double bootstrap approach," Research in International Business and Finance, Elsevier, vol. 36(C), pages 96-111.
    3. George S. Oldfield & Anthony M. Santomero, 1997. "The Place of Risk Management in Financial Institutions," Center for Financial Institutions Working Papers 95-05, Wharton School Center for Financial Institutions, University of Pennsylvania.
    4. Dinh, Thi Huyen Thanh & Kleimeier, Stefanie, 2007. "A credit scoring model for Vietnam's retail banking market," International Review of Financial Analysis, Elsevier, vol. 16(5), pages 471-495.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking; Risk Management; Efficiency; Vietnam;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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