Journal of Economic – Law and Banking

Artificial intelligence risk management framework in Financial and Banking Organizations: Proposed model and approach

Trieu Thu Huong — 2026-03-13

Artificial Intelligence (AI) is playing an increasingly important role in the financial and banking sector, but also raises multiple challenges related to transparency, fairness, explainability, and regulatory compliance. This study proposes an AI risk management framework specifically designed for financial institutions, grounded in the integration of the KAIRI index (Knowledge, Accuracy, Interpretability, Robustness, Impact) with established AI risk management frameworks. The framework is intended to facilitate the identification, quantification, and mitigation of risks across the entire operational lifecycle of AI systems. Its development is informed by a synthesis of domestic and international research, and it is structured around five foundational pillars: transparent design, quantitative risk assessment, lifecycle monitoring, independent auditing, and compliance–ethics. By leveraging KAIRI as a core foundation in conjunction with existing frameworks, this approach provides a comprehensive and practicable pathway for the safe, sustainable, and governance-aligned adoption of AI within financial institutions.

Impact of digital transformation on financial performance of retail banking: Evidence from the Joint Stock Commercial Bank for Investment and Development of Vietnam

Nguyen Thi Quynh Giao — 2026-03-13

This paper examines the impact of digital transformation on the financial performance of retail banking at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) over the period from 2012Q1 to 2025Q2. Given the time-series properties of the data, the study employs the Autoregressive Distributed Lag (ARDL) model in conjunction with the Error Correction Model (ECM) to assess both short-run and long-run effects of digital transformation. The empirical results indicate that digital transformation exhibits a robust long-run relationship with cost efficiency (proxied by CIR). In addition, digital transformation effects on profitability indicators (ROA and ROE) significantly during the Covid-19 pandemic because banks have strong motives to digitalize. These results suggest that the financial benefits of digital transformation at BIDV are primarily realized through cost optimization, whereas improvements in profitability require a longer time horizon and a higher level of digital maturity. Based on these findings, the paper provides managerial implications emphasizing a digitization-for-efficiency approach, highlighting the importance of process optimization, data-driven governance, and channel restructuring to enhance the financial performance of retail banking.

The impact of Basel III liquidity management on the credit activities of Vietnamese commercial banks

Bui Huy Trung — 2026-03-13

This study examines the impact of liquidity management under Basel III, measured by the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), on the credit activities of Vietnamese commercial banks. The analysis is based on quarterly data from 27 Vietnamese CBs over the period 2013Q1- 2024Q4, employing the fixed-effect regression method. The results indicate that LCR has a positive effect on credit growth and contributes to reducing credit risk. In contrast, NSFR is positively associated with credit growth but also increases credit risk, reflecting a trade-off between long-term funding stability and loan quality. Overall, the findings suggest that strengthening Basel III-based liquidity management can support credit expansion while enhancing risk control; however, implementation should be aligned with market conditions and individual banks’ capacities, and accompanied by effective supervisory mechanisms to mitigate unintended adverse effects on credit quality.

Sectoral green investment in Viet Nam over the 2020- 2030 period: Current status and policy recommendations

Tran Viet Dung — 2026-03-13

This study aims to assess the current status of sectoral green investment and its corresponding policy framework in Viet Nam during the 2020- 2030 period, identify policy bottlenecks, and propose policy recommendations. Employing analytical and synthetic methods alongside descriptive statistics based on secondary data from international organizations and state management agencies, the findings reveal that the landscape of green investment in Viet Nam exhibits severe structural imbalances. Green investment flows are highly concentrated in the renewable energy sector, while key sectors with significant emission reduction potential, such as sustainable agriculture, green transportation, and industry, lack commensurate resources. This stagnation and uneven distribution stem from implementation barriers, such as policy fragmentation, policy lags, and complex cross-sectoral conflicts of interest. Based on these findings, the study provides policy recommendations, particularly emphasizing the need to shift the governance approach from isolated support mechanisms to systemic coordination. The primary focus should be on integrating spatial planning, perfecting market mechanisms such as Direct Power Purchase Agreements (DPPA) and the carbon market, and applying blended finance instruments.

International experiences in capital inflow management and policy implications for Viet Nam

Do Thu Hang — 2026-03-13

This study examines international experiences in capital inflow management within the framework of the IMF’s Institutional View, with the aim of deriving policy implications for Vietnam. Using a qualitative approach combined with comparative case studies of Brazil and South Korea, the paper analyzes how different countries implement policy instruments to manage capital inflows. The findings indicate that Brazil mainly relies on price-based measures to curb speculative capital flows, while South Korea focuses on macroprudential tools and foreign currency risk management to reduce financial system vulnerabilities. Based on an assessment of capital inflows to Vietnam during the period 2008-2024, the study suggests that Vietnam should develop a multi-layered policy framework consistent with the IMF’s Institutional View, strengthening macroprudential measures, enhancing foreign currency risk management, and selectively applying direct capital flow management measures when necessary.

The impact of land development imbalance on local government budget balance: Evidence from Vietnam’s provinces and cities

Tran Hoang Minh — 2026-03-13

This study analyzes the trade-off between the national goal of ensuring food security and the need for local governments in Viet Nam to enhance their fiscal autonomy, which is heavily reliant on land-based revenues. Using a panel dataset for all 63 provinces from 2014-2023, the research constructs an index that reflects the disparity between the planned land structure and economic development potential. The analysis results show that a higher degree of this imbalance leads to a decline in local fiscal autonomy. This finding provides concrete quantitative evidence of the negative fiscal impact of land use planning policy: must accept a reduction in their potential revenue. Academically, the research clarifies the link between spatial planning and public finance. Policy-wise, the results provide a basis for reconsidering inter-governmental fiscal mechanisms, aiming to establish appropriate financial support for disadvantaged localities, thereby promoting more balanced and equitable development.

An integrated data governance model based on Dama-Dmbok for Vietnamese banks: From architecture design to implementation feasibility

Chu Thi Hong Hai — 2026-03-13

Data governance (DG) is a foundational capability that improves banks’ operational efficiency and competitiveness; however, many Vietnamese commercial banks still implement DG in a fragmented and poorly coordinated manner due to fragmented infrastructure, limited resources, and compliance pressures. This study proposes an integrated DG model grounded in the DAMA-DMBOK framework and tailored to the Vietnamese context, emphasizing metadata and data lineage. The model comprises three components: (i) a target-state data architecture; (ii) an organizational and decision-rights structure with the roles of Chief Data Officer (CDO), Data Steward, and Business Data Owner; and (iii) end-to-end DG processes across the data lifecycle with embedded compliance controls. Validation through an embedded case study of three banks and triangulation of internal data and documents indicates improved data quality (reduced duplication and increased completeness) and enhanced management reporting effectiveness. The study contributes a phased DG design operationalized through metadata/lineage mechanisms and scalable across the Vietnamese banking system.