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• Determinants of Liquidity Risk in Vietnamese Commercial Banks

  Nguyen Thi Huong, Dang Thi Hai Yen

  Received: Dec 12, 2022 / Published: Mar 29, 2024

   Abstract PDF

  Liquidity risk, which tends to compound other risks such as credit and market risks, has become one of the principal risks in banks. Thus, this study examined the determinants of liquidity risk measured by the loan deposit ratio (LDR). The sample included 30 commercial banks in Vietnam based on secondary data coverage from 2017-2021. Descriptive statistics were used to determine the general situation of the banks' assets, liabilities, and business performance. The random effects model (REM) was chosen to determine factors affecting liquidity risk. The results show the huge gap in the business performance of the four state-owned banks and the rest of the joint-stock commercial banks, and the state-owned banks always accounted for over 50% of the total credit, assets, and deposits of the whole banking system. The average banks’ credit and profit growth rates were around 17% and 30%, respectively, and the bad debt ratio was about 2%. Increasing a bank’s credit growth rate and profitability would push up its liquidity risk. On the other hand, holding several liquid securities that banks could sell immediately to meet solvency requirements and maintaining a high capital adequacy ratio (CAR) would reduce their liquidity risk. These findings are valuable to the banks in understanding how to minimize liquidity risk, such as controlling the credit growth rate and CAR, setting appropriate profit targets, and investing in liquid securities. Additionally, by conducting monetary policies, the State Bank should regulate market liquidity and bank liquidity for the safe operation of the financial system.

• The Impacts of Social and Economic Determinants on Poverty: An Empirical Study on Southeast Asia

  Nguyen Anh Tru

  Received: Sep 02, 2021 / Accepted: Jun 27, 2022 / Published: Jun 27, 2022

   Abstract PDF

  The article attempted to examine the influences of social and economic determinants on poverty in seven Southeast Asian countries, namely Lao PDR, Malaysia, Myanmar, the Philippines, Thailand, Timor-Leste, and Vietnam, between 1996 and 2013 using a panel dataset. It was empirically found that the average GDP per capita and Gini index contributed to poverty reduction in Southeast Asian countries. The results also addressed that the population and poverty gap had positive impacts on the rate of the poverty headcount in the region. Policies were recommended to accelerate economic growth, reduce poverty, and achieve sustainable development in Southeast Asia. First, economic growth should be fostered since it assists in reducing poverty in Southeast Asian countries. Second, although the growth of population provides the labor forces to the economy, population growth in Southeast Asia should be carefully controlled since it increases poverty in the region. Third, an increase in the number of rich inhabitants in the society should be encouraged because it can mitigate poverty in the region. Finally, policies in redistributing income as well as in narrowing down income inequality in each society should be considered by the governments because these contribute to poverty reduction in the region.