The Impact of Ownership Ratio on the Risk Taking of Vietnamese Commercial Banks

Abstract

The study aimed to find out the impact of ownership ratio on the risk-taking of Vietnamese commercial banks (Banks of Vietnam). Estimate the FGLS for the model from panel data collected in the financial statements and annual reports of 32 commercial banks in the period 2012 - 2022. The dependent variable, Z-score represents the risk-taking of Vietnamese commercial banks, and the variables representing the ownership rate are state ownership, private ownership, as well as foreign ownership. The results show that private ownership has a negative effect and state ownership has a positive effect, and finally, foreign ownership has no impact on the risk-taking of Vietnamese commercial banks. Based on that, the author proposes some recommendations as follows: scale-up accompanied by improved quality of risk management; keep the State ownership ratio unchanged to a certain extent; increase the rate of private ownership in commercial banks.