Abstract

This paper investigates the impact of foreign ownership on liquidity risk of commercial banks in Vietnam during the period 2009-2015. The regression analysis of panel data is used in the paper with the data collected from 35 Vietnamese commercial banks. The results show that higher foreign ownership is associated with lower liquidity risk of banks. In addition, credit risk and liquidity risk in previous year have a positive relationship with liquidity risk of banks in current year. The results of the study provide empirical evidence to support the important role of foreign ownership in liquidity risk management and other operations of commercial banks in Vietnam.

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