Penalties for violating in Commercial Bank in Vietnam

Abstract

 In the context of increasing competitive pressure, the demanding in maximizing profit encourages commercial bank to violate the law. The situation in Vietnam is highly concerned where regulations and penalties have been judged as not sufficient, effective and adaptive in preventing the profit earned from these activities. As a repercussion, searching for solution has profound practical significance. 

Base on economic model of Becker (1986) as well as Circular 21/2013/TT-NHNN, the authors use Eviews model and concreted that penalty in Vietnam has not made significant impact to commercial bank which have been found to be violating in period of 2014-2018 regrading profit, stock performance and market ownership.