Central bank reserves boost bank lending and reduce credit risk in Vietnam.
The article explores how a country's central bank reserves affect bank lending in Vietnam. By studying data from 2007 to 2019, the researchers found that when central banks accumulate more reserves, banks tend to increase their loan growth. This leads to a decrease in credit risk and more financial stability in the banking system. The study suggests that reserve accumulation can be a useful tool for promoting economic growth and maintaining financial stability.