The impact of income diversification on business risk of commercial banks in Viet Nam

Abstract

This research evaluates “The impact of income diversification on business risk of commercial banks in Viet Nam” with statistics originating from samples of 25 commercial banks in Viet Nam during period 2010-2020. Quantitative analytical method is regression binary logistic. From result of quantitative analysis, the model proved that the factor income diversification against the business risk. Besides, the model also proved that: there are two groups of factors that affect risk of commercial banks. Some adverse factors against this risk incude: liquidity risk (LEV), deposit over total asset (DTA), economic growth (GDP), inflation (INF) and favor factors with risk such as: size of bank (SIZE), percentage of loan over total asset (LTA).