IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v36y2024i6p723-740.html
   My bibliography  Save this article

Navigating banking transitions: insights into competition and stability from Vietnam’s experience

Author

Listed:
  • Phuong Thanh Le
  • Hassan F. Gholipour
  • Amir Arjomandi

Abstract

This article investigates the relationship between bank competition and stability within a transitioning economy, focusing on Vietnamese banks from 2007 to 2018. Set against the backdrop of a transformative banking landscape post the collapse of the socialist bloc, the article utilises the Lerner Index to measure bank competition. The Z-score is used as a measure of bank stability. Panel fixed effects and difference GMM estimations suggest that heightened competition correlates positively with bank stability. Notably, these dynamics hold true even after omitting state-owned banks, signifying that government-controlled banks do not exclusively drive the observed relationships. Policymakers, hence, face the crucial task of balancing liberalisation efforts with safeguarding bank stability and emphasising the need for robust risk management and strong corporate governance in transitioning economies dominated by public ownership. This article thus offers valuable insights for policy refinement in similarly poised nations.

Suggested Citation

  • Phuong Thanh Le & Hassan F. Gholipour & Amir Arjomandi, 2024. "Navigating banking transitions: insights into competition and stability from Vietnam’s experience," Post-Communist Economies, Taylor & Francis Journals, vol. 36(6), pages 723-740, August.
    • Handle: RePEc:taf:pocoec:v:36:y:2024:i:6:p:723-740
    DOI: 10.1080/14631377.2024.2329392
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2024.2329392
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2024.2329392?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:36:y:2024:i:6:p:723-740. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.