Title: The impact of foreign bank presence on domestic banks' profit: evidence from Vietnam

Authors: Phan Dinh Nguyen

Addresses: Ho Chi Minh City University of Technology (HUTECH), 475A Dien Bien Phu Road, Ward 25, Binh Thanh District, Hochiminh City, Vietnam

Abstract: This paper examines the impact of foreign bank presence on Vietnamese domestic banks' profit by employing data of 30 domestic banks and 30 foreign banks operating in Vietnam from 2012 to 2017. Pooled OLS, REM, FIX and GLS are used to estimate but GLS regressed results are employed to explain the impact. We propose two new measurements of foreign bank presence to expand the existing literature. Our findings show that the increased presence of foreign banks enhances domestic banks' profit. However, domestic banks have to share interest bearing income with foreign banks.

Keywords: impact; foreign bank presence; domestic bank profit; Vietnam.

DOI: 10.1504/GBER.2022.123270

Global Business and Economics Review, 2022 Vol.26 No.4, pp.403 - 416

Accepted: 05 Aug 2021
Published online: 07 Jun 2022 *

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