The Interactive Relationship between Credit Growth and Operational Self-Sustainability of People’s Credit Funds in Mekong Delta Region of Vietnam

HA, Duong Van

doi:10.13106/jafeb.2019.vol6.no3.55

Cited by 7 publications

(9 citation statements)

References 14 publications

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“…Therefore, the hypothesis that stated the capital adequacy ratio and of CCIs had an impact on the credit growth rate has been accepted at 10% level of significance as it is indicated in the model. This result agreed with the expected sign and hypotheses and agreed Thampy (2004), Martynova (2015) and Ha (2019b). The implication of this finding was the higher capital adequacy ratio, the less credit supply it would use.…”

Section: Discussion Of Factors Affecting the Credit Growthsupporting

confidence: 88%

“…Martynova (2015) showed that banks facing higher capital requirements could reduce credit supply as well as decreased credit demand. According to Ha (2019b), capital adequacy refers to the level of capital in an organization that is available to cover its risk. All financial institutions are required to have a minimum amount of capital relative to the value of their asset.…”

Section: Credit Growthmentioning

confidence: 99%

“…This showed that the high loan-to-deposit ratios had led to increase the credit growth rate. Ha (2019b) showed that the loan-to-deposit ratio was a key indicator to be monitored to take the gauge of credit institutions' structural liquidity positions, and the loan-to-deposit ratio had a positive relationship with the credit growth of credit institutions Sixthly, breadth of outreach: According to Quayes (2012), the number of people a microfinance institution has extended credit to, or the number of borrowers over a specific period was considered the breadth of outreach. On the basis the number of active borrowers is defined as individually identifiable borrowers who had at least one current, outstanding loan with the microfinance institution, Abrar (2018) also showed that the breadth of outreach is shown by the number of active borrower.…”

Section: Credit Growthmentioning

confidence: 99%

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Reciprocity Between Productivity and Credit Growth in Vietnam’s Co-operatives Credit Institutions

2020

RWE

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Co-operative credit institutions (CCIs) play an important role for achieving the national mission of financial inclusion. Therefore, we should be taking a wider view of productivity and credit and assessing productivity and credit growth. These are factors affecting the CCIs' operations and goals. This study used the panel data regression method with research data from thirty-two selected CCIs in Vietnam from 2013 to 2018. This study’s purpose to discover the reciprocity relationship productivity and credit growth in Vietnam's CCIs. By assessing the factors affecting the productivity and credit growth, the research results have determined the bidirectional interactions and causal relationships between productivity and credit growth. Based on the findings the study offers policy implication and new insights for developing a more sustainable CCIs and further emphasizes optimal policies to CCIs management that helps the policy-makers, CCIs managers and executives in improving the overall productivity, and the credit growth of CCIs going forward.

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Section: Discussion Of Factors Affecting the Credit Growthsupporting

confidence: 88%

Section: Credit Growthmentioning

confidence: 99%

Section: Credit Growthmentioning

confidence: 99%

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Reciprocity Between Productivity and Credit Growth in Vietnam’s Co-operatives Credit Institutions

2020

RWE

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“…From that, it can be clearly seen that Capital Adequacy Ratio is important to banks and to a country's economy. CAR ratio is also positively influenced by Credit Growth (Ha, 2019).…”

Section: Literature Reviewmentioning

confidence: 95%

Bank Capital Adequacy Ratio and Bank Performance in Vietnam: A Simultaneous Equations Framework

Dao¹,

NGUYEN²

2020

JAFEB

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Playing an important role in developing the economy and overall developments of the country, commercial banks have to be aware of their crucial presence in order to perform well and contribute significantly. At the same time, as a place to receive deposits, banks are required to be in safe situations to avoid bankruptcy or deal with financial crises. This research seeks to identify the determinants of Capital Adequacy Ratio and Banks' performance as well as the relationship between these two dependent variables. The paper uses 128 observations of 16 Vietnamese commercial banks during the period from 2010 to 2017, with two simultaneous dependent variables CAR and ROE, and independent variables including Return on Assets, Tobin Q, Credit growth, GDP growth, Equity to Deposits, Loans to Deposits, Bank size, Cost to Income, Liquidity risk, Provision for Loan loss ratio, Non-performing loans and Inflation. The results reveal that Capital Adequacy Ratio and Banks' Performance have statistically significant relationship and Credit growth, GDP growth, Equity-to-Deposit ratio and Costto-Income ratio all have significant effects on two dependent variables. The findings of this study suggest that commercial banks should control the respective elements in order to maintain adequate level of capital and also create effective performance.

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“…In Vietnam, studies about the financial impact on income inequality have recently attracted interest. Nguyen, Bigman, Berg, and Vu (2007) and Ha (2019) find that access to micro-credit provided by Vietnam Bank for Social Policies can not only alleviate poverty, but reduce slightly income inequality as well. Research by Le and Chu (2012) is the first study using the array data estimation by province level, showing that financial development can reduce income inequality.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Credit on Income Inequality in Vietnam

Lê¹,

Nguyen²

2020

JAFEB

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This paper examines the impacts of credit on income inequality in Vietnam. Though it is one of the most common measures of financial development, there is a dearth of research in this area. Unlike previous studies, the paper disaggregates the impact of each type of credit on income inequality, looking at the Gini coefficient. We employ the Generalized Method of Moment (GMM) to solve the endogenous problem. The primary data set contains a panel of 60 Provincial observations, from data collected from the General Statistics Office of Vietnam from 2002 to 2016. The empirical findings show that, while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. The results also confirm the important roles of education, institutional quality and foreign direct investment in fighting against income inequality in Vietnam. However, the paper does not provide adequate evidence to support the inverted U-shaped relationship between credit and income inequality. Based on the findings, we argue that the government should direct flows of credit to real economic activities rather than speculative investment; more bank credit should be allocated to rural areas and agriculture; and favorable credit programs should be designed to promote education, especially of those living in rural areas.

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The Interactive Relationship between Credit Growth and Operational Self-Sustainability of People’s Credit Funds in Mekong Delta Region of Vietnam

Cited by 7 publications

References 14 publications

Reciprocity Between Productivity and Credit Growth in Vietnam’s Co-operatives Credit Institutions

Reciprocity Between Productivity and Credit Growth in Vietnam’s Co-operatives Credit Institutions

Bank Capital Adequacy Ratio and Bank Performance in Vietnam: A Simultaneous Equations Framework

The Impact of Credit on Income Inequality in Vietnam

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