Current situation of systemic risks in Vietnam commercial banks and some recommendations

Abstract

The 2008 global financial crisis changed researchers’ perceptions of the importance and consequences of systemic risk on the overall performance of the whole financial system. The authors review theories of systematic risk such as the concept, classification and consequences of systematic risk. In section 2, authors analyzed the current situation of systemic risks in Vietnam commercial banks during the period from 2009 to 2019, focusing on the aspects of high financial leverage, credit structure, high NPL ratio, liquidity stress... Lastly, the authors propose a number of recommendations to manage systemic risks in the banking sector.