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Determinants of Operational Risk of the Commercial Bank After the Financial Crisis: Empirical Evidence from Vietnam

Author

Listed:
  • Tu Thi Thanh Tran

    (Vietnam National University, Hanoi, Vietnam)

  • Nhung Hong Do

    (School of Banking and Finance, National Economics University, Hanoi, Vietnam)

  • Yen Thi Nguyen

    (Vinh University, Vinh, Nghe An, Vietnam)

Abstract

The study aims to evaluate the impact of factors on operational risk at the Vietnamese commercial banks. By using OLS regression, Random-effect and Fixed-effect methods with the data of Vietnamese banks in the period 2008-2021, the authors have examined determinants of the commercial bank’s operational risk. The research results show that the larger the bank size, the higher the operational risk. Conversely, the capital adequacy ratio and operating efficiency negatively impact the operational risk. The research result has emphasized an inverse correlation between economic growth, credit growth and operational risk. Moreover, there is a difference in the operational risk of commercial banks with different operation years and ownership structures. Based on these results, recommendations are proposed for the Government, the State Bank of Vietnam and the commercial banks for effective operational risk management.

Suggested Citation

  • Tu Thi Thanh Tran & Nhung Hong Do & Yen Thi Nguyen, 2025. "Determinants of Operational Risk of the Commercial Bank After the Financial Crisis: Empirical Evidence from Vietnam," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 28(01), pages 1-31, March.
    • Handle: RePEc:wsi:rpbfmp:v:28:y:2025:i:01:n:s0219091525500055
    DOI: 10.1142/S0219091525500055
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    More about this item

    Keywords

    Commercial banking; financial crisis; financial institutions; risk management;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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