Factors affecting liquidity of Vietnam joint stock commercial banks

Abstract

 This paper studies factors affecting the liquidity of Vietnam joint stock commercial banks. Research data is collected from audited financial statements of 23 commercial banks in the period of 2009- 2018. Regression analysis with GLS shows that loan growth, the level of deposit, bank size, asset management and asset quality have strong and statistically significant negative effects on the liquidity; while profitability, operating efficiency, non-interest margin and stock listing have positive effects on the liquidity. In addition, the interaction effect between loan growth and the level of deposit has statistically significant effects on the liquidity. According to research results, this paper provides some recommendations related to the target of ensuring and increasing the liquidity of Vietnam joint stock commercial banks, with expecting they will be matching decisions according to bank-specific factors.