A Study on Financial Risk Identification and Evaluation of Bank A in Vietnam
DOI:
https://doi.org/10.54097/da872848Keywords:
Financial risk identification, Financial risk evaluation, AHP, EWM, Vietnamese commercial banksAbstract
The sound operation of commercial banks is crucial for maintaining the stability of the financial system, particularly in emerging economies. With the deepening of financial reforms and increasing market competition in Vietnam, commercial banks are facing more complex financial risks. Taking Bank A in Vietnam as the research object, this study focuses on the identification and evaluation of financial risks. A comprehensive financial risk assessment model combining the Analytic Hierarchy Process (AHP) and the Entropy Weight Method (EWM) is constructed. Based on key financial indicators, a multi-level evaluation system covering capital adequacy, asset quality, profitability, and liquidity is established. The integration of AHP and EWM effectively reduces subjectivity in indicator weighting and improves the reliability of evaluation results. Empirical analysis using recent financial data of Bank A demonstrates that the proposed model can effectively assess the bank’s financial risk level and provide useful references for financial risk management in Vietnamese commercial banks.
Downloads
References
[1] Jorion, P. (2007) Value at Risk: The New Benchmark for Managing Financial Risk (3rd ed.). McGraw-Hill,135-137
[2] Weston, J. F., & Copeland, T. E. (2013). Financial Theory and Corporate Policy (4th ed.). Pearson Education
[3] Greuning, H., & Bratanovic, S. B. (2009). Analyzing Banking Risk: A Framework for Assessing Corporate Governance and Financial Risk (3rd Edition) [M]. The World Bank,2009:3-4. DOI: https://doi.org/10.1596/978-0-8213-7728-4
[4] Miller, M. H., & Modigliani, F. (1963). Corporate Income Taxes and the Cost of Capital: A Correction. The American Economic Review, 53(3), 433-443.
[5] Douglas W. Diamond, Raghuram G. Rajan. A Theory of Bank Capital[J]. The Journal of Finance,2000,55(6). DOI: https://doi.org/10.1111/0022-1082.00296
[6] Gertler, M., & Gilchrist, S. (1994). Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms.The Quarterly Journal of Economics, 109(2), 309-340. DOI: https://doi.org/10.2307/2118465
[7] Froot, K. A., Scharfstein, D. S., & Stein, J. C. (1993). Risk Management: Coordinating Corporate Investment and Financing Policies. The Journal of Finance, 48(5), 1629-1658. DOI: https://doi.org/10.1111/j.1540-6261.1993.tb05123.x
[8] Anderson, R. (2004). Regulatory and Market Discipline in Banking Crisis: A Case Study of Japan. Journal of Banking & Finance, 28(1), 1-22
[9] Sinkey, J. F. (1975). A Multivariate Statistical Analysis of the Characteristics of Problem Banks. Journal of Finance, 30(1), 21-36. DOI: https://doi.org/10.1111/j.1540-6261.1975.tb03158.x
[10] Altman, E. I. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance, 23(4), 589-609. DOI: https://doi.org/10.1111/j.1540-6261.1968.tb00843.x
[11] Martin, D. (1977). Early Warning of Bank Failure: A Logit Regression Approach. Journal of Banking & Finance, 1(3), 249-276. DOI: https://doi.org/10.1016/0378-4266(77)90022-X
[12] Ralph Andrew Nash. Committee of Sponsoring Organizations of the Tread way Comm ission[M]. Internal Control-Integrated Framework,2005,5(6):69-75.
[13] Odom, M. D., & Sharda, R. (2006). A Neural Network Model for Bankruptcy Prediction. Journal of Business Research, 58(1), 1-9.
[14] Franco, G. (2011). Banking Efficiency and Risk Management: Empirical Analysis of Financial Institutions. Journal of Financial Studies, 45(2), 88-110.
[15] Andrew, C. (2013). Risk Management Index (RMI) and Bank Stability during the Financial Crisis. Journal of Banking & Finance, 37(9), 3425-3442.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 International Journal of World Economic Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
