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Bank lending behavior in emerging markets

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  • Vo, Xuan Vinh

Abstract

This article sheds further light on the bank lending behavior of Vietnam, an important emerging market. Motivated by the fact that most of emerging economies tend to finance economic growth by bank lending, we analyze the determinants of bank lending using a sample of Vietnamese banks. Employing a number of econometric estimation approaches for robust result, we find that bank lending behavior is significantly depending on bank specific characteristics and macroeconomic factors. We do not find a significant impact of bank market structure on bank lending. The current paper has strong implications in the context of Vietnam where the problem of high non-performing loans has taken heavy toll on the economy.

Suggested Citation

  • Vo, Xuan Vinh, 2018. "Bank lending behavior in emerging markets," Finance Research Letters, Elsevier, vol. 27(C), pages 129-134.
    • Handle: RePEc:eee:finlet:v:27:y:2018:i:c:p:129-134
    DOI: 10.1016/j.frl.2018.02.011
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    Cited by:

    1. Dang, Van Dan, 2019. "Funding liquidity and bank lending: Evidence from Vietnam," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 15(2).
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    3. Siming Yu & Muhammad Safdar Sial & Dang Khoa Tran & Alina Badulescu & Phung Anh Thu & Mariana Sehleanu, 2020. "Adoption and Implementation of Sustainable Development Goals (SDGs) in China—Agenda 2030," Sustainability, MDPI, Open Access Journal, vol. 12(15), pages 1-16, August.
    4. Vo, Xuan Vinh & Nguyen, Thi Lam Anh & Tuan, Le Quoc & Luu, Hiep Ngoc & Vu, Kieu Trang, 2020. "Local business environment, domestic CEOs and firm performance in a transitional economy: Empirical evidence from Vietnam," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 236-249.
    5. Dang, Van Dan, 2020. "Do non-traditional banking activities reduce bank liquidity creation? Evidence from Vietnam," Research in International Business and Finance, Elsevier, vol. 54(C).
    6. Azmat Gani & Tareq Rasul, 2020. "The Institutional Quality Effect on Credits Provided by the Banks," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(3), pages 249-258, August.
    7. Van Dan Dang, 2020. "Bank funding and liquidity in an emerging market," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 13(3), pages 256-272.
    8. Jacob Cherian & Muhammad Safdar Sial & Dang Khoa Tran & Jinsoo Hwang & Thai Hong Thuy Khanh & Mansoor Ahmed, 2020. "The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective," Sustainability, MDPI, Open Access Journal, vol. 12(6), pages 1-13, March.

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    More about this item

    Keywords

    Bank lending behavior; Emerging markets; Financial system; Vietnam;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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