Market discipline and the regulatory change: Evidence from Vietnam

Cogent Economics & Finance

Tu Dq Le¹ 

[1] University of Economics and Law, Ho Chi Minh City;

关键词: market discipline;    capital regulation;    bank risk-taking;    system gmm;    vietnam;   

DOI  :  10.1080/23322039.2020.1757801

来源: DOAJ

【 摘 要 】

Following the recent global financial crisis, Vietnamese banks experienced changes in the minimum capital adequacy requirement following the Basel framework. We examine the impact of the regulatory change on market discipline between 2006 and 2015. The findings show a weakening of market discipline when the minimum capital adequacy requirement of 9% is imposed. The same is true for foreign-owned commercial banks during the period of implementing new capital regulation. Also, there is no evidence of the difference in market discipline between bank ownership and risks in the Vietnamese banking system. Our research has implications for bank supervisors, policy-makers, and bank managers.

【 授权许可】

Unknown