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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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    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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