Impact of Ownership Structure and Bank Performance ¨C An Empirical Test in Vietnamese Banks

Nguyen Hong Son, Tran Thi Thanh Tu, Cuong Dinh, Anh Lai and Pham Bao Khanh

International Journal of Financial Research, 2015, vol. 6, issue 4, 123-133

Abstract: By using the data collected from the whole 44 banks in the banking system in Vietnam from 2010-2012, the authors try to investigate the impacts of ownership structure on bank performance in Vietnamese banking system. Research results show that capital concentration and private ownership have positive impact on bank profitablity, the nonperforming loan ratio has negative relation with banks¡¯ profitability. Besides, the research results are also consistent with the previous researches (Nguyen, Tran & Pham, 2014) on the positive correlation of corporate governance and bank performance in Vietnam. The findings in this paper are also relevant with the previous researches in Kenya, China, Malaysia (Wen, 2010, Rokwaro, 2013). From these findings, some policy implications are also suggested as follow: (i) encourage the large shareholders participation the Board of Director to reduce the interest conflict in banks, (ii) enhance private ownership to increase bank profitability, (iii) improve the corporate governance of banks under international standards, and (iv) push-up the solving of non-performing loans in the bank restructuring in Vietnam.

Keywords: ownership structure; bank restructuring; corporate governance; non-performing loan (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:6:y:2015:i:4:p:123-133

DOI: 10.5430/ijfr.v6n4p123

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