RISK MANAGEMENT OF THE BANKING SYSTEM: AN EMERGING MARKET SURVEY

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Thao Ngoc Nguyen ORCID logo, Chris Stewart ORCID logo, Roman Matousek

DOI:10.22495/rgcv8i3p1

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Abstract

The purpose of this paper is to examine risk management of the Vietnamese banking system. This is the first such study of the Vietnamese banking system. To be able to carry out a comparative analysis and provide policy recommendations for risk management, we carry out an original survey of Vietnamese commercial banks using a questionnaire. 42% of the interviewees are General/Deputy General Directors and 58% are Heads/Deputies of a risk management department. The Kruskal-Wallis, Pearson chi-square and other tests are employed to examine the relationship between risk management and bank efficiency. The survey results indicate that there is a difference between banks in terms of risk area identification, risk intensification methods prioritized, risk monitoring methods, efficiency improvement suggestions, awareness of other banks’ risk management systems and credit risk analysis.

Keywords: Commercial Banks, Central Banks, Risk Identification, Risk Intensification Methods, Risk Monitoring, Efficiency, Emerging Market, Questionnaire

JEL Classification: G14, G21, G32, E58

Received: 07.06.2018
Accepted: 31.07.2018
Published online: 06.09.2018

How to cite this paper: Nguyen, T. N., Stewart, C., & Matousek, R. (2018). Risk management of the banking system: An emerging market survey. Risk Governance and Control: Financial Markets & Institutions, 8(3), 7-20. http://doi.org/10.22495/rgcv8i3p1