Open AccessMarket Discipline in the Interbank Market: Evidence from an Emerging Country
Author(s) -
Dung Viet Tran,
Chi Huu Lu
Publication year - 2021
Publication title -
wseas transactions on business and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.158
H-Index - 16
eISSN - 2224-2899
pISSN - 1109-9526
DOI - 10.37394/23207.2021.18.97
Subject(s) - vietnamese , interbank lending market , market liquidity , financial system , business , market discipline , asset (computer security) , financial crisis , quality (philosophy) , emerging markets , monetary economics , economics , finance , philosophy , linguistics , computer security , epistemology , computer science , macroeconomics
This study provides one of the first evidence of the market discipline in the interbank market of the Vietnamese banking system after the global financial crisis. Based on the data of 19 commercial banks listed in Vietnam from 2010 to 2019, our empirical results suggest a weak interbank discipline in the Vietnamese banking system. Banks seem to be interested in the liquidity ratio of their fellows, especially for smaller banks, whereas they pay more attention to asset quality in the case of larger banks. We believe our study is of interest to regulators and policymakers in Vietnam