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

Tu Thi Thanh Tran (), Nhung Hong Do () and Yen Thi Nguyen
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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

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2025, vol. 28, issue 01, 1-31

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.

Keywords: Commercial banking; financial crisis; financial institutions; risk management (search for similar items in EconPapers)
JEL-codes: G01 G32 G33 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0219091525500055

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