- Systems need effective macroeconomic forecasting tools to prepare for unusual fluctuations in financial and monetary markets, changes in government policies and international trading practices.
- Banks need to have a team to manage the release of information to the market, control information that affects the bank's reputation and minimize the consequences when unexpected fluctuations cause mass withdrawals.
- Banks need to carry out risk management in accordance with the law and international practices. Banks need to develop a roadmap for operating a risk management mechanism according to the Basel III Agreement, gradually fully complying with and perfecting the principles and standards of this Agreement.
CHAPTER 5 CONCLUSION
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Factors affecting the liquidity of stocks listed on the Vietnamese stock market - 4 -
Factors affecting the liquidity of stocks listed on the Vietnamese stock market - 21 -
Factors affecting liquidity of Vietnamese joint stock commercial banks - 11 -
Factors affecting the liquidity of stocks listed on the Vietnamese stock market - 26 -
Factors affecting the liquidity of Vietnamese commercial banks - 2
Group of Vietnamese commercial banks need to pay attention in their liquidity risk management policy:
- Firstly, banks need to develop an appropriate liquidity risk management strategy. Research has shown that liquidity risk has a positive relationship with the ratio of short-term credit to mobilization, so banks need to reasonably structure mobilized capital and credit in the market, balance assets and liabilities, determine the most appropriate and optimal liquidity reserve level, ensure liquidity for the bank and at the same time achieve profit targets.
- Second, in addition to assessing the operational capacity, financial situation, debt repayment sources and capital usage of customers, especially the group of state-owned enterprise customers - the key customer group of state-owned commercial banks; banks need to have measures to assess, monitor and support the business activities of customers in many aspects to help this group of enterprises operate effectively and increase their debt repayment capacity.
CONCLUDE
In Vietnam, events that threaten market liquidity have occurred and caused losses to a number of domestic commercial banks. Although the State Bank intervened, and the banks themselves handled the situation quickly and avoided losses, the phenomenon of massive withdrawals did not occur; the liquidity of Vietnamese commercial banks is currently facing many problems from the currencies in operation and the liquidity of the market when banks need to sell assets as well as the interest rate race between commercial bank groups.
However, for state-owned commercial banks, they have not yet faced a truly serious situation. Firstly, with large capital and a wide and dense network of operations, state-owned commercial banks can easily find immediate capital by using liquidity buffer capital, selling existing liquid assets and recapitalizing within the system. Another advantage is that commercial banks are the backbone of the Vietnamese financial and banking system, so they have huge capital support from the State Bank and state-owned economic organizations and state units in general. Thus, with factors affecting liquidity risk in the state-owned commercial bank group, this group needs to pay attention to making credit provisions healthy and sustainable so as not to affect the liquidity supply.
- Firstly, banks need to develop an appropriate liquidity risk management strategy. Research has shown that liquidity risk has a positive relationship with the ratio of short-term credit to mobilization, so banks need to reasonably structure mobilized capital and credit in the market, balance assets and liabilities, determine the most appropriate and optimal liquidity reserve level, ensure liquidity for the bank and at the same time achieve profit targets.
- Second, in addition to assessing the operational capacity, financial situation, debt repayment sources and capital usage of customers, especially the group of state-owned enterprise customers - the key customer group of state-owned commercial banks; banks need to have measures to assess, monitor and support the business activities of customers in many aspects to help this group of enterprises operate effectively and increase their debt repayment capacity.
REFERENCES
Vietnamese Document Catalog
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Nguyen Bao Huyen, 2016. Liquidity risk at Vietnamese commercial banks . Banking Academy, PhD thesis in Economics.
4. Truong Quang Thong, 2012. Commercial bank management . Ho Chi Minh City Economic Publishing House.
5. Truong Quang Thong, 2013. Factors affecting liquidity risk of Vietnam's commercial banking system . Ho Chi Minh: Economic Development Journal 276, 50-62.
English Document Catalog
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