The interrelationship among bank profitability, bank stability, and loan growth: Evidence from Vietnam

Tu D. Q. Le

Cogent Business & Management, 2020, vol. 7, issue 1, 1840488

Abstract: This study investigates the interrelationship among bank stability, profitability, and loan growth in the Vietnamese banking system between 2006 and 2017 using a simultaneous equations model. The findings show the bidirectional links between these variables. More specifically, bank profitability is positively associated with bank stability and vice versa. Loan growth is negatively related to bank stability and vice versa. Also, the findings show a positive interrelationship between bank profitability and loan growth. Nonetheless, these findings suggest the trade-off benefit of pursuing massive loan growth by banks. Nonetheless, our research has implications for bank supervisors, policy-makers, and bank managers.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2020.1840488 (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:taf:oabmxx:v:7:y:2020:i:1:p:1840488

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2020.1840488

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().