Assessing the Impact of Macroeconomic Uncertainty on the Stability of Listed Commercial Banks in Vietnam

Paper Details

Authors: Thu H.T.T.; Tien M.P.; Thu H.G.T.

DOI: 10.28924/2291-8639-24-2026-152

Journal: International Journal of Analysis and Applications

Year: 2026

Publisher: Etamaths Publishing

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

This paper examines the impact of macroeconomic instability on the stability of listed commercial banks in Vietnam. The stability of the banking system plays a crucial role in the national economy and financial system. In the context of current policy instability, macroeconomic instability, and integration, the challenges to the banking system's stability are increasing. The paper uses the GMM estimation method to assess the impact of the Macroeconomic Instability Index (MII) on the Z-score of listed commercial banks in Vietnam. The research results show an inverse impact of macroeconomic instability on banking stability, implying that increased macroeconomic instability weakens banking stability. Macroeconomic shocks degrade credit quality, increase liquidity risk, and increase risk provisioning pressure, leading to banking instability. Furthermore, the national governance index is shown to have a positive impact on banking instability. © 2026 the author(s).

Keywords

banking stability; macroeconomic uncertainty; worldwide governance indicators (WGI); Z-score, macroeconomic instability index (MII)

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