CHAPTER 5: CONCLUSIONS AND POLICY IMPLICATIONS
5.2. Policy implications for improving the efficiency of monetary policy transmission through credit channels of Vietnamese commercial banks
5.2.6 Create a mechanism to develop competitive capacity evenly among commercial banks
Empirical research results show that bank competitiveness has an important impact on the transmission of monetary policy through credit channels. While the difference between large and small banks still exists, monetary policy will have an asymmetric effect, so the change of monetary policy may have actual heterogeneous effects among banks. This causes the inefficiency of monetary policy. The process of international economic integration will create more and more pressure on the business activities of Vietnamese commercial banks, while the advantages belong to foreign commercial banks. To be able to dominate, take advantage of opportunities, and increase competitiveness, Vietnamese commercial banks need to know their position, must evaluate their competitiveness based on the mentioned criteria. Since then, there are measures to improve the internal capacity to improve their own competitiveness.
Recently, although the commercial banking system has made certain developments, the gap between domestic Vietnamese commercial banks is still very large in all aspects.
Therefore, when integrating into the world economy later, Vietnam's commercial banking system will face many challenges.
REFERENCES
1. Aftalion, & White. (1978). A study of a monetary system with a pegged discount rate under different market structures. Journal of Banking & Finance, 1, 349–
371.
2. Amidu, M., & Wolfe, S. (2013). The effect of banking market structure on the lending channel: Evidence from emerging markets. Review of Financial Economics, 22(4), 146–157. https://doi.org/10.1016/j.rfe.2013.05.002
3. Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51.
Retrieved from
https://econpapers.repec.org/RePEc:eee:econom:v:68:y:1995:i:1:p:29-51
4. Baglioni, A. (2007). Monetary policy transmission under different banking structures: The role of capital and heterogeneity. International Review of Economics & Finance, 16(1), 78–100. https://doi.org/10.1016/j.iref.2005.04.002 5. Bernanke, B. (1990). The Federal Funds Rate and the Channels of Monetary Transnission. National Bureau of Economic Research.
https://doi.org/10.3386/w3487
6. Bernanke, B. S., & Blinder, A. S. (1988). Credit, Money, and Aggregate Demand (Working Paper Series). https://doi.org/10.3386/w2534
7. Bernanke, B. S., & Gertler, M. (1995). Inside the Black Box: The Credit Channel of Monetary Policy Transmission. Journal of Economic Perspectives, 9(4), 27–
48. https://doi.org/10.1257/jep.9.4.27
8. Boone, J. (2004). A New Way to Measure Competition. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.557821
9. Burkhart, R. E., & Lewis-Beck, M. S. (1994). Comparative Democracy: The Economic Development Thesis. The American Political Science Review, 88(4), 903–910. https://doi.org/10.2307/2082715
10. Chu Khánh Lân. (2012). Nghiên cứu thực nghiệm về truyền dẫn CSTT qua kênh tín dụng tại VN. Banking Review, 13, 17–22.
11. Fu, Y., Foden, J. A., Khayter, C., Maeder, M. L., Reyon, D., Joung, J. K., &
Sander, J. D. (2013). High-frequency off-target mutagenesis induced by CRISPR-Cas nucleases in human cells. Nature Biotechnology, 31(9), 822–826.
https://doi.org/10.1038/nbt.2623
12. Fungacova, Z., Pessarossi, P., & Weill, L. (2012). Is Bank Competition Detrimental to Efficiency? Evidence from China. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.2206860
13. Fungáčová, Z., Solanko, L., & Weill, L. (2010). Market power in the Russian banking industry. International Economics, 124(2010), 127–145.
https://doi.org/10.1016/S2110-7017(13)60022-0
14. Gertler, M., & Gilchrist, S. (1993). The cyclical behavior of short-term business lending. Implications for financial propagation mechanisms. European Economic Review, 37(2–3), 623–631. https://doi.org/10.1016/0014- 2921(93)90052-C
15. Gunji, Miura, & Yuan, L. (2009). Bank competition and monetary policy. Japan and the World Economy, 21, 105–115.
16. Hellmann, T. F., & Murdock, K. C. (1998). Liberalization, Moral Hazard in Banking and Prudential Regulation: Are Capital Requirements Enough? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.92288
17. Kashyap, A. K., & Stein, J. C. (1997). The role of banks in monetary policy: a survey with implications for the European Monetary Union. Economic
Perspectives, (Sep), 2–18. Retrieved from
https://ideas.repec.org/a/fip/fedhep/y1997isepp2-18nv.22no.5.html
18. Kashyap, A., & Stein, J. (1997). What Do a Million Banks Have to Say About the Transmission of Monetary Policy? National Bureau of Economic Research.
https://doi.org/10.3386/w6056
19. Kashyap, A., Stein, J., & Wilcox, D. (1992). Monetary Policy and Credit Conditions: Evidence From the Composition of External Finance. National Bureau of Economic Research. https://doi.org/10.3386/w4015
20. Khan, H. H., Ahmad, R. B., & Gee, C. S. (2016). Bank competition and monetary policy transmission through the bank lending channel: Evidence from ASEAN.
International Review of Economics & Finance, 44(C), 19–39.
https://doi.org/10.1016/j.iref.2016.03.00
21. Lensink, R., & Sterken, E. (2002). Monetary transmission and bank competition in the EMU. Journal of Banking & Finance, 26(11), 2065–2075.
https://doi.org/10.1016/s0378-4266(02)00199-1
22. Lerner, A. P. (1934). The Concept of Monopoly and the Measurement of Monopoly Power. The Review of Economic Studies, 1(3), 157–175.
https://doi.org/10.2307/2967480
23. Leroy, A. (2014). Competition and the bank lending channel in Eurozone.
Journal of International Financial Markets, Institutions and Money, 31(C), 296–
314. https://doi.org/10.1016/j.intfin.2014.04.
24. Olivero, M. P., Li, Y., & Jeon, B. N. (2011a). Competition in banking and the lending channel: Evidence from bank-level data in Asia and Latin America.
Journal of Banking & Finance, 35(3), 560–571.
https://doi.org/10.1016/j.jbankfin.2010.08.004
25. Olivero, M. P., Li, Y., & Jeon, B. N. (2011b). Consolidation in banking and the lending channel of monetary transmission: Evidence from Asia and Latin America. Journal of International Money and Finance, 30(6), 1034–1054.
https://doi.org/10.1016/j.jimonfin.2011.06.006
26. Pruteanu-Podpiera, Weill, & Schobert. (2907). Market Power and Efficiency in the Czech Banking Sector. CNB Working Paper, 6.
27. Repullo, R., & Suarez, J. (2000). Entrepreneurial moral hazard and bank monitoring: A model of the credit channel. European Economic Review, 44(10), 1931–1950. https://doi.org/10.1016/s0014-2921(99)00069-0
28. Turk Ariss, R. (2010). On the implications of market power in banking: Evidence from developing countries. Journal of Banking & Finance, 34(4), 765–775.
https://doi.org/10.1016/j.jbankfin.2009.09.004
29. van Leuvensteijn, M., Sứrensen, C. K., Bikker, J. A., & van Rixtel, A. A. R. J.
M. (2013). Impact of bank competition on the interest rate pass-through in the euro area. Applied Economics, 45(11), 1359–1380.
https://doi.org/10.1080/00036846.2011.617697
30. VanHoose, D. D. (1983). Monetary policy under alternative bank market structures. Journal of Banking & Finance, 7(3), 383–404.
https://doi.org/10.1016/0378-4266(83)90045-6
31. Yang, J., & Shao, H. (2016). Impact of bank competition on the bank lending channel of monetary transmission: Evidence from China. International Review