Determine to liquidity of Vietnam listed banks
Abstract
Liquidity risk is the risk occurred when banks don‟t have ability to supply
cash for immediate liquidity needs; or having sufficient capacity but with high costs.
It happens when banks lack ability to pay because they cannot convert asset to cash in time or cannot borrow to respond the requirements of liquidity contracts. It will affect badly operation of commercial banks.
The purpose of this research is to review determinants liquidity risk in banking sector of Vietnam by the financial ratios. This study investigates both macroeconomic and microeconomic factors with those variables that influence on liquidity risk. Based
on those data from sample, which is 8 banks listed on Vietnam Stock Exchange during the period from 2007 to 2011 by quarter, the paper will suggest a model to identify determinants to liquidity risk in banking system in Vietnam. The result of this research shows that liquidity risk is affected by deposit rate and amount of money
deposits in banks.