The impact of real estate default risk on bank efficiency and financial stability: Evidence from Vietnam

Duong Thi Anh Tien () and Hoang Thi Ngoc Nghiem ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 6, 2966-2976

Abstract: The purpose of this study is to examine the impact of real estate default risk on the efficiency and stability of Vietnamese commercial banks during the period from 2007 to 2022. By applying the two-step System Generalized Method of Moments (SGMM) regression method, Panel Vector Autoregression (PVAR), and Granger Causality tests, combined with unbalanced panel data, the author investigates how real estate default risk influences the profit efficiency and stability of 35 Vietnamese commercial banks over this period. The research results indicate that real estate default risk negatively affects the profit efficiency and stability of Vietnamese banks. Additionally, there is a causal relationship between profit efficiency and bank financial stability. Control variables such as bank capital, size, bad debts, technology, the impact of COVID-19, economic growth, and inflation all influence profit efficiency and bank stability. Meanwhile, non-interest income primarily affects the financial stability of Vietnamese commercial banks. The findings of this study have significant practical implications for investors, business managers, banks, and policymakers, providing valuable insights into the factors affecting bank performance and stability in Vietnam.

Keywords: Bank efficiency; Default risk; Financial stability; Real estate; X-SCORE. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ijirss.com/index.php/ijirss/article/view/10242/2395 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:6:p:2966-2976:id:10242

Access Statistics for this article

International Journal of Innovative Research and Scientific Studies is currently edited by Natalie Jean

More articles in International Journal of Innovative Research and Scientific Studies from Innovative Research Publishing
Bibliographic data for series maintained by Natalie Jean ().