Risk‐taking Behavior and Ownership Concentration the Case of Vietnamese Banks

Vietnam’s banking sector in recent years has shown significant improvements resulted from stable inflation and interest rates measurements, which has enhanced Vietnam’s financial system position on global market. Consequently, Vietnam’s commercial banks have raised further awareness of risk assessment and focused on risk management in order to making rational decisions in their daily business. However, a majority of the banking system is yet concentrating on profit or cost ratios factors and somewhat ignores the importance of studying the endogenous factors, especially ownership structure and ownership concentration on their business. This study examines the relationship between ownership concentration and risk-taking behavior in Vietnam’s banking system taking some operating efficiency factors into account, conducted on 20 different representatives from Vietnam banking system from 2002-2019.