Factors affecting liquidity of Vietnamese joint stock commercial banks

The final limitation is that the author is still lacking in referring to previous studies, typically the study of Truong Quang Thong with nonlinear results between total assets and liquidity. This leads to redundant research in re-studying the variable of asset size affecting liquidity. In the next study, the author will be more careful in choosing variables and referring to previous research works.

5.4. Proposed future research directions

Due to limited time and many objective conditions, the research paper still has many limitations as mentioned above, so the author would like to propose the following research direction:

The author will increase the number of research samples and add banks with different characteristics from commercial banks such as: Bank for Agriculture and Rural Development and foreign banks in Vietnam. In addition, the author will also classify by bank size for a more complete and detailed study. It is expected that the research results will be more objective and represent the entire banking industry more clearly.

In addition to the banking activity variables affecting liquidity in this study, the author also focuses on less studied impacts such as: exchange rates, monetary policy, and marginal interest rates. This is expected to give the study a view from many different aspects of the factors affecting bank liquidity.

With the macro variables, the study will add a variable about how the global financial crisis affects the Vietnamese economy in general and bank liquidity in particular. The study will no longer be limited to the conditions of the Vietnamese economy but will be expanded to the world.

All the recommendations for further research will help the research readers as well as bank managers have a more comprehensive and broader view of liquidity, thereby further enhancing liquidity risk management activities.

REFERENCES

LIST OF VIETNAMESE DOCUMENTS

 B i Nguyen Kha, 2016. Improving the competitiveness of commercial banks in Vietnam from the liquidity perspective. Journal of Science, Technology & Food, October 2016, pp. 78 - 89.

 CafeF. Financial report < http://s.cafef.vn/du-lieu.chn >. [Access date: June 7, 2018].

 Duong Thi Binh Minh and Su Dinh Thanh, 2004. Monetary and financial theory . Ho Chi Minh City University of Economics, Faculty of State Finance.

 System of legal documents

< http://www.moj.gov.vn/pages/vbpq.aspx >. [Access date: July 10, 2018].

 Huynh Thi Huong Thao, 2011. Solutions to ensure liquidity at Vietnamese commercial banks. Journal of Science & Applications , No. 14-15.

 Le Long Hau and Nguyen Ai Nhi, 2016. Factors affecting the inefficiency of credit risk provisioning of Vietnamese commercial banks in the period 2006 - 2014. Ho Chi Minh City Open University Journal of Science , No. 52 (1) 2017, pp. 118 - 129.

 Le Quoc Phuong, 2017. Advantages and challenges in controlling inflation.

Finance Magazine , issue 1, March 2017.

 Mai Thi Phuong Thuy and Bi Thi Diep, 2018. Factors affecting liquidity risk of Vietnamese commercial banks. Finance magazine , issue 2, May 2018.

 Nguyen Hoang Phong and Phan Thi Thu Ha, 2016. Factors affecting bank liquidity - Research practice in Vietnam. Journal of Economics & Development , No. 236, February 2017, pp. 26 - 36.

 Nguyen Thi My Linh, 2016. Factors affecting liquidity ratio at

Vietnamese commercial banks. Banking magazine, No. 9, May 2016, pp. 22-26.

 Law library < https://thuvienphapluat.vn/ >. [Access date: July 10, 2018].

 General Statistics Office. Macro data < https://www.gso.gov.vn >. [Access date: June 10, 2018].

 Truong Quang Thong, 2013. Factors affecting liquidity risk of Vietnam's commercial banking system. Economic Development Journal, No. 276, October 2013, pp. 50 - 62.

 Vietstock. Financial report < http://finance.vietstock.vn/tai-lieu-co- dong.htm >. [Access date: June 7, 2018].

 Vo Xuan Vinh, 2016. Liquidity risk and credit risk: The case of Vietnamese commercial banks. Journal of Economic Development, year 28 - issue 1, January 2017, pp. 45 - 63.

 Vu Thi Hong, 2015. Factors affecting the liquidity of Vietnamese commercial banks. Development & Integration Magazine, College of Waterway Transport II , No. 23 (33), July-August 2015, pp. 32-49.

LIST OF ENGLISH DOCUMENTS

 Akhtar, M.F., Ali, K. & Sadaqat, S., 2011. Liquidity Risk Management: A comparative study between Conventional and Islamic Banks of Pakistan. Interdisciplinary Journal of Research in Business, Vol. 1, No. 1, pp. 35 – 44.

 Arif, A. & Anees, AN, 2012. Liquidity Risk and Performance in the Banking System. Journal of Financial Regulation and Compliance , 20(2), 182-195.

 Aspachs, O., Nier, E. & Tiesset, M., 2005. Liquidity, Banking Regulation and macroeconomics. Proof of shares, bank liquidity from a panel the

bank's UK – resident. Bank of England Working papers.

 Basel, 2008. Principles for Sound Liquidity Risk Management and Supervision. < http://www.bis.org >. [Accessed: 05 June 2018].

 Bunda, I. & Desquilbet, J.B., 2008. The Bank Liquidity Smile Across Exchange Rate Regimes. International Economic Journal , 22(3), pp.361 – 386.

 Calomiris, CW, Heider, F. & Hoerova, M., 2013. A Theory of Bank Liquidity Requirements, SSRN Electronic Journal.

 Diamond, DW & Dybvig, PH, 1983. Bank runs, Deposit Insurance and Liquidity. The Journal of Political Economy, Vol. 91, No. 3, pp. 401 – 419.

 Drehmann, M. & Nikolaou, K., 2008. Funding liquidity risk: definition and measurement. BIS (Bank for International Settlements) Working paper , No 316.

 Duttweiler, R., 2009. Managing Liquidity in Banks: A top down approach.< https://books.google.com.vn/books?hl=vi&lr=&id=xGhg8JfzEu0 C&oi=fnd&pg=PP10&dq=managing+liquidity+ in+banks&ots=3zFyqn9UG w&sig=rFzB0nO5enXmTSqoWP9NUmNqSV8&redir_esc=y#v=onepage& q=managing%20liquidity%20in%20banks&f=false >. [Access date: September 2, 2018].

 Lartey, VC, Antwi, S. & Boadi, EK, 2013. The relationship between Liquidity and Profitability of Listed Banks in Ghana. International Journal of Business and Social Sciences, Vol. 4 No. 3, pp. 48 – 56.

 Lucchetta, M., 2007. What Do Data Say About Monetary Policy, Bank Liquidity and Bank Risk Taking? Economic Notes Banca Monte dei Paschi di Siena SpA , pp.189 – 203.

 Shen, CH, Chen, YK, Kao, LF & Yeh, CY, 2009. Bank Liquidity Risk and Performance. Working papers.

 Valla, N., Escorbiac, BS & Tiesset, M., 2006. Bank liquidity and financial stability. Banque de France financial stability review , pp.89 – 104.

 Vodová, P., 2011. Determinants of Commercial Bank's Liquidity in Slovakia. < http://www.opf.slu.cz/kfi/icfb/proc2011/pdf/65_Vodova.pdf > . [Accessed: 03 September 2018].

 Vodová, P., 2011. Liquidity of Czech Commercial Banks and its Determinants. International Journal of Mathematical Models and Methods in Applied Sciences , pp.1060 – 1067.

 Vong, API & Chan, HS, 2009. Determinants of bank profitability in Macao. Macau Monetary Research Bulletin , 12 (6), pp. 93 – 113.

 Waemustafa, W. & Sukri, S., 2016. Systematic and Unsystematic Risk Determinants of Liquidity Risk Between Islamic and Conventional Banks. International Journal of Economics and Financial Issues , 2016, 6(4), 1321

– 1327.

APPENDIX

I. LIST OF BANKS

STT

Bank name
1	Asia Commercial Joint Stock Bank (ACB)
2	An Binh Commercial Joint Stock Bank (ABBANK)
3	Ho Chi Minh City Housing Development Joint Stock Commercial Bank (HDBANK)
4	Vietnam Joint Stock Commercial Bank for Industry and Trade (VIETINBANK)
5	Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)
6	Orient Commercial Joint Stock Bank (OCB)
7	Vietnam Maritime Commercial Joint Stock Bank (MARITIMEBANK)
8	Vietnam Technological and Commercial Joint Stock Bank (TECHCOMBANK)
9	Nam A Commercial Joint Stock Bank (NAMABANK)
10	Joint Stock Commercial Bank for Foreign Trade of Vietnam (VIETCOMBANK)
11	National Citizen Commercial Joint Stock Bank (NCB)
12	Military Commercial Joint Stock Bank (MBBANK)
13	Vietnam International Commercial Joint Stock Bank (VIB)
14	Southeast Asia Commercial Joint Stock Bank (SEABANK)
15	Saigon - Hanoi Commercial Joint Stock Bank (SHB)
16	Saigon Thuong Tin Commercial Joint Stock Bank (SACOMBANK)
17	Petrolimex Joint Stock Commercial Bank (PGBANK)
18	Vietnam Export Import Commercial Joint Stock Bank (EXIMBANK)
19	Kien Long Commercial Joint Stock Bank (KIENLONGBANK)
20	Vietnam Prosperity Joint Stock Commercial Bank (VPBANK)

Maybe you are interested!

II. QUANTIFICATION

Appendix 1: Descriptive statistics

. sum liq llr size ldr cap roa inf gdp

Variable

Obs	Mean	Std. Dev.	Min	Max
liq	160	52.46119	12.53071	19.1	72.34
llr	160	1.232687	1.232823	-1.01	11.4
size	160	32.33594	1.071575	30.17	34.72
ldr	160	61.97	15.64954	21.48	102.69
cap	160	9.084375	3.43275	4.06	25.54
roll	160	.7608125	.5134566	.01	2.54
inf	160	6.56375	5.470651	.6	18.13
GDP	160	6.1275	.566613	5.25	6.81

Appendix 2: Correlation Matrix

liq	llr	size	ldr	cap	roll	inf	GDP
liq	1.0000
llr	-0.1323	1.0000
size	0.2863	0.1171	1.0000
ldr	0.9619	-0.1158	0.2781	1.0000
cap	-0.0302	0.0584	-0.7028	0.0594	1.0000
roll	0.1286	-0.0467	0.0420	0.2239	0.2665	1.0000
inf	-0.3099	-0.2135	-0.1909	-0.1700	0.1563	0.4518	1.0000
GDP	0.2158	-0.0162	0.0941	0.1685	-0.1661	0.0538	-0.1892	1.0000

Source	SS	df	MS
Model	23925.9204	7	3417.98863
Residual	1040.04898	152	6.84242752
Total	24965.9694	159	157.018675

Number of obs	=	160
F(7, 152)	=	499.53
Prob > F	=	0.0000
R-squared	=	0.9583
Adj R-squared	=	0.9564
Root MSE	=	2.6158

liq

Coef.	Std. Err.	t	P>\|t\|	[95% Conf.	Interval]
llr	-.3288658	.1848442	-1.78	0.077	-.6940614	.0363299
size	-1.330127	.3459204	-3.85	0.000	-2.01356	-.6466945
ldr	.7711189	.0161669	47.70	0.000	.7391781	.8030596
cap	-.5343982	.1076637	-4.96	0.000	-.7471088	-.3216876
roll	.7008307	.5349821	1.31	0.192	-.3561302	1.757792
inf	-.3746466	.0481105	-7.79	0.000	-.4696982	-.2795951
GDP	.1521229	.3942509	0.39	0.700	-.6267962	.931042
_cons	53.93969	12.16591	4.43	0.000	29.90357	77.9758