Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic

This study empirically explores the effects of bank funding diversity on Vietnamese commercial banks’ profitability and risk in the context of the COVID-19 pandemic. The panel regression method was used to analyze quarterly data from 27 Vietnamese commercial banks from Q1-2016 to Q1-2021. The study...

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Main Authors: Manh Hung Pham, Nhat Minh Nguyen
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2191305
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author Manh Hung Pham
Nhat Minh Nguyen
author_facet Manh Hung Pham
Nhat Minh Nguyen
author_sort Manh Hung Pham
collection DOAJ
description This study empirically explores the effects of bank funding diversity on Vietnamese commercial banks’ profitability and risk in the context of the COVID-19 pandemic. The panel regression method was used to analyze quarterly data from 27 Vietnamese commercial banks from Q1-2016 to Q1-2021. The study findings demonstrate that commercial banks with diverse financing sources are more profitable and riskier. In the meanwhile, the COVID-19 outbreak did not diminish the short-term profitability of Vietnamese commercial banks, but it did increase their exposure to risk. On the basis of the empirical findings, this paper also proposes a number of strategies to assist Vietnamese commercial banks in operating more effectively and securely in the context of the COVID-19 pandemic.
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spelling doaj-art-867a2ad5eb924468b6e9b0c284fe1e0d2025-08-20T03:08:24ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2191305Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemicManh Hung Pham0Nhat Minh Nguyen1Research & Consulting Department, Bank Research Institute, Banking Academy of Vietnam, Hanoi, VietnamResearch & Consulting Department, Bank Research Institute, Banking Academy of Vietnam, Hanoi, VietnamThis study empirically explores the effects of bank funding diversity on Vietnamese commercial banks’ profitability and risk in the context of the COVID-19 pandemic. The panel regression method was used to analyze quarterly data from 27 Vietnamese commercial banks from Q1-2016 to Q1-2021. The study findings demonstrate that commercial banks with diverse financing sources are more profitable and riskier. In the meanwhile, the COVID-19 outbreak did not diminish the short-term profitability of Vietnamese commercial banks, but it did increase their exposure to risk. On the basis of the empirical findings, this paper also proposes a number of strategies to assist Vietnamese commercial banks in operating more effectively and securely in the context of the COVID-19 pandemic.https://www.tandfonline.com/doi/10.1080/23311975.2023.2191305Banksfunding diversityriskprofitabilityCOVID-19panel data
spellingShingle Manh Hung Pham
Nhat Minh Nguyen
Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic
Cogent Business & Management
Banks
funding diversity
risk
profitability
COVID-19
panel data
title Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic
title_full Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic
title_fullStr Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic
title_full_unstemmed Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic
title_short Bank funding diversity, risk and profitability: Evidence from Vietnam in the context of the Covid-19 pandemic
title_sort bank funding diversity risk and profitability evidence from vietnam in the context of the covid 19 pandemic
topic Banks
funding diversity
risk
profitability
COVID-19
panel data
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2191305
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AT nhatminhnguyen bankfundingdiversityriskandprofitabilityevidencefromvietnaminthecontextofthecovid19pandemic