Assessment of the impact of non-bank financial institutions development on financial stability in Vietnam: an ARDL approach
Keywords:
non-bank financial institution (NBFI); financial stability; autoregressive distributed lag (ARDL) model
Abstract
his paper seeks to evaluate the impact of non-bank financial institutions (NBFIs) development on
financial stability in Vietnam. Applying the autoregressive distributed lag (ARDL) model to the annual data
series between 2000 and 2018, empirical findings confirm the overall impact of the NBFIs development
on Vietnam’s financial stability is positive. Accordingly, although the business performance of some NBFI
categories may pose potential operational risks during specific stages, these seem not considerable enough to
affect Vietnam’s banking system in particular and financial stability as a whole
