Vietnamese Banking Operations: Is the Depositors an Effective Channel for Monitoring?

Abstract

This paper carry out considering depositors discipline in Vietnamese banking after the financial crisis 2007 – 2009. Based on the data of 19 comercial banks listed in Vietnam from 2010 to 2019, our empirical results suggest that although evidence of depositors discipline are weak, however, present slightly than in large banks. The results also indicate that depositors appear to be sensitive to macroeconomic variables representing systemic risks particularly growth GDP and exchange rate, but less responsive to bank risk variables. Overall, we hope our study contribute to the literature of market discipline in Vietnamse banking under the monitoring of depositors.