The impact of house prices on banking stability in Vietnam: the moderating role of investor sentiment

IF 1.3 Q3 BUSINESS, FINANCE

Journal of Banking Regulation Pub Date : 2024-06-25 DOI:10.1057/s41261-024-00252-z

Nguyen Thi Nhung, Nguyen Thi Thanh Huyen, Vo Hoai Anh, Nguyen Phuong Thao, Trinh Thao Van

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Abstract

This article aims to examine the moderating role of investor sentiment in the impact of house prices on banking stability over the period from 2017 to 2022 in Vietnam. The research tries to build a banking stability index by combining the principal components of an international rating system of financial institutions stability (CAMELS) through principal component analysis, while the average apartment price index in Hanoi and Ho Chi Minh City is used as a variable of house prices in Vietnam, and investor sentiment is measured using the Google search volume index. By using panel corrected standard errors, the research gives evidence of the positive impact of house prices on banking stability in Vietnam, and the moderating role of investor sentiment on this positive effect. Moreover, the research indicates the positive roles of bank efficiency, regulatory quality, and GDP growth for boosting banking stability, while the opposite impact can be seen in the case of bank concentration. In addition, there is no evidence of any influence of bank size on banking stability in Vietnam.

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房价对越南银行业稳定性的影响：投资者情绪的调节作用

本文旨在研究 2017 年至 2022 年期间，投资者情绪对越南房价对银行业稳定性影响的调节作用。研究试图通过主成分分析，结合金融机构稳定性国际评级体系（CAMELS）的主成分，建立银行稳定性指数，同时使用河内市和胡志明市的平均公寓价格指数作为越南房价的变量，并使用谷歌搜索量指数衡量投资者情绪。通过使用面板校正标准误差，研究证明了房价对越南银行业稳定性的积极影响，以及投资者情绪对这种积极影响的调节作用。此外，研究还表明银行效率、监管质量和 GDP 增长对促进银行业稳定性具有积极作用，而银行集中度则会产生相反的影响。此外，没有证据表明银行规模对越南银行业的稳定性有任何影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Banking Regulation

CiteScore

3.70

自引率

6.20%

发文量

期刊介绍： Under the guidance of its highly respected Editors and an eminent and truly international Editorial Board?Journal of Banking Regulation?has established itself as one of the leading sources of authoritative and detailed information on all aspects of law and regulation affecting banking institutions.Journal of Banking Regulation?publishes in each quarterly issue detailed briefings analyses and updates which are of direct relevance to practitioners working in the field while meeting the highest intellectual standards.Journal of Banking Regulation?publishes the latest thinking and best practice on:Basel I II and IIIModels for banking supervisionInternational accounting standardsDeposit protectionEnforcement decisions in banking regulation and supervisionCross-border competition in banking servicesCorporate governance in banksHarmonisation in banking marketsSupervising credit riskAnti-money laundering legislation and regulationsMonetary integrationRisk capital and capital adequacySystemic risk in banking operationsCross-border regulationCross-border bank insolvencyModels for banking riskEssential reading for:central bankersbanking supervisorsfinancial regulatorsbankerscompliance officersheads of risk managementpolicy makersbank associationslawyers specialising in banking lawaccountantsinternal and external bank auditorsacademics and researchers