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Impact of Fintech Firms’ Development on Bank Risk Taking: Evidence from Vietnam

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  • Hong Hanh Ngo

Abstract

Using a sample of 26 commercial banks from Vietnam over the period 2012-2022, this study examines the impact of Fintech firms’ progress on bank risk. The results show that the development of Fintech companies positively affects bank performance but triggers higher bank risk. Furthermore, robustness test consistently indicates that Fintech firms negatively affect bank financial stability. The empirical findings propose several implications for regulators, policymakers, and bank managers to formulate strategies for managing Fintech development and bank risk.

Suggested Citation

  • Hong Hanh Ngo, 2025. "Impact of Fintech Firms’ Development on Bank Risk Taking: Evidence from Vietnam," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 17(8), pages 1-75, August.
    • Handle: RePEc:ibn:ijefaa:v:17:y:2025:i:8:p:75
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    References listed on IDEAS

    as
    1. Bermpei, Theodora & Kalyvas, Antonios & Nguyen, Thanh Cong, 2018. "Does institutional quality condition the effect of bank regulations and supervision on bank stability? Evidence from emerging and developing economies," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 255-275.
    2. Li, Zixian & Moreira, Fernando, 2024. "Financial openness, liability composition of banks, and bank risk: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 97(C).
    3. Liurui Deng & Yongbin Lv & Ye Liu & Yiwen Zhao, 2021. "Impact of Fintech on Bank Risk-Taking: Evidence from China," Risks, MDPI, vol. 9(5), pages 1-27, May.
    4. Murinde, Victor & Rizopoulos, Efthymios & Zachariadis, Markos, 2022. "The impact of the FinTech revolution on the future of banking: Opportunities and risks," International Review of Financial Analysis, Elsevier, vol. 81(C).
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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