Impact of Foreign Ownership on Liquidity Risk of Commercial Banks in Vietnam

Abstract

The article examines the influence of foreign ownership on liquidity risk of Vietnamese commercial banks over the period of 2009-2020. We use panel data regression methods including Pooled OLS, FEM, REM and GLS with data samples of 30 Vietnamese commercial banks. The research findings show that higher the foreign ownership shares lead to lower levels of the liquidity risk of commercial banks. Besides, credit risk, equity to total asset, loan to deposit ratio, and economic growth have significant impacts on liquidity risk.