The impact of ownership concentration on bank stability: evidence from Vietnamese commercial bank

Le Ha Diem Chi and Pham Hai Nam

International Journal of Monetary Economics and Finance, 2025, vol. 18, issue 4, 245-259

Abstract: The paper uses data from 27 Vietnamese commercial banks from 2011 to 2021 to examine the impact of concentrated ownership on bank stability. In the research model, in addition to the ownership concentration variable, represented by the largest shareholder rate, the control variables include the bank-specific variables, the macroeconomic variables, and the variables that describe the quality of regulation and supervision by the State. The dependent variables use credit risk, and the Z-score represent calculated based on return on assets (ROA) and return on equity (ROE). By the system generalised method of moments (SGMM) estimation method, the research results show that highly concentrated ownership positively impacts bank stability. The study's findings highlight the role of ownership concentration, as an effective governance mechanism, in increasing supervision and the discipline of administrators to avoid excessive risk-taking and maintain banking stability.

Keywords: ownership concentration; bank stability; Z-score; credit risk; bank-specific; risk-taking. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=148278 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijmefi:v:18:y:2025:i:4:p:245-259

Access Statistics for this article

More articles in International Journal of Monetary Economics and Finance from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().