Determinants of Bank Stability in Emerging Economies: Empirical Evidence
From Vietnam

Truc Le NGUYEN, Thi Tho DO; Le Truc Anh NGUYEN

doi:10.46609/IJSSER.2024.v09i08.014

Title: Determinants of Bank Stability in Emerging Economies: Empirical Evidence From Vietnam
Authors: Truc Le NGUYEN, Thi Tho DO and Le Truc Anh NGUYEN
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 9 Issue: 8 Publication Date: August 2024 DOI: 10.46609/IJSSER.2024.v09i08.014
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Truc Le NGUYEN, Thi Tho DO and Le Truc Anh NGUYEN VNU University of Economics and Business, Hanoi, Vietnam
MLA 8 NGUYEN, Truc Le, et al. "Determinants of Bank Stability in Emerging Economies: Empirical Evidence From Vietnam." Int. j. of Social Science and Economic Research, vol. 9, no. 8, Aug. 2024, pp. 2767-2781, doi.org/10.46609/IJSSER.2024.v09i08.014. Accessed Aug. 2024. APA 6 NGUYEN, T., DO, T., & NGUYEN, L. (2024, August). Determinants of Bank Stability in Emerging Economies: Empirical Evidence From Vietnam. Int. j. of Social Science and Economic Research, 9(8), 2767-2781. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i08.014 Chicago NGUYEN, Truc Le, Thi Tho DO, and Le Truc Anh NGUYEN. "Determinants of Bank Stability in Emerging Economies: Empirical Evidence From Vietnam." Int. j. of Social Science and Economic Research 9, no. 8 (August 2024), 2767-2781. Accessed August, 2024. https://doi.org/10.46609/IJSSER.2024.v09i08.014.
References [1]. 27 Vietnamese commercial banks. (2009 - 2023). Consolidated Financial Statement. [2]. Chand, S. A., Kumar, R. R., & Stauvermann, P. J. (2021). Determinants of bank stability in a small island economy: A study of Fiji. Accounting Research Journal, 34(1), 22-42. https://doi.org/10.1108/ARJ-06-2020-0140. [3]. Elahi, M., Ahmad, H., Shamas Ul Haq, M., & Saleem, A. (2021). The impact of operating cash flows on financial stability of commercial banks: Evidence from Pakistan. The Journal of Asian Finance, Economics and Business, 8(11). [4]. General Statistics Office of Vietnam. (2008-2022). Statistical data. [Online]. Available at [Accessed 4 April 2024]. [5]. General Statistics Office of Vietnam. (2024). The outlook for growth in 2023 and the potential for economic development in 2024. [Online]. Available at: [Accessed 4 April 2024]. [6]. Koskei, L. (2020). Determinants of banks’ financial stability in Kenya commercial banks. Asian Journal of Economics, Business and Accounting, 18(2), 48-57. https://doi.org/10.9734/AJEBA/2020/v18i230281. [7]. Law No. 32/2024/QH15 of the National Assembly on Credit Institutions dated 18 January 2024. Available at:
ABSTRACT: The thesis explores the main factors affecting the financial stability of commercial banks in Vietnam. It utilizes annual panel data from 27 banks listed on the Vietnamese Stock Exchange, covering the period from 2009 to 2023. Findings reveal that factors such as the equity-to-asset ratio (ETA), bank size (SIZE), return on equity (ROE), and ownership structure (OWN) positively correlate with financial stability, whereas non- performing loans (NPL) negatively affect it. The impact of net interest margin (NIM) and loan-to-deposit ratio (LDR) on stability remains inconclusive. Among macroeconomic factors, the inflation rate (INF) positively influences financial stability, while GDP growth (GDP) does not have a significant effect. Additionally, COVID-19 variables showed no significant association with financial stability.

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