Impact of Foreign Ownership on Liquidity Risk: Empirical Evidence in Vietnamese Commercial Banks

This article is designed to assess the impact of foreign ownership on liquidity risk at 27 Vietnamese commercial banks in the period 2008-2021. With the research data as panel data, the article uses the estimation method for the regression model with balanced panel data including Pooled OLS model, FEM model, and REM model, then proceed to proceed. testing, selecting a suitable model, and testing and dealing with defects on the selected model. The results show that the foreign ownership ratio has a negative effect on liquidity risk at a higher level of ownership, liquidity risk decreases and vice versa. From the results of this study, the article has made recommendations on policies to limit liquidity risk at Vietnamese commercial banks.

Keywords: commercial banks, liquidity risk, foreign ownership