Digital transformation: The impact of information technology application on the risks of commercial banks


Authors

  • Cu Nguyen Ha Trang VNU University of Economics and Business
  • Tran Linh Anh VNU University of Economics and Business
  • Le Minh Anh VNU University of Economics and Business
  • Nguyen Thi Thu Huyen VNU University of Economics and Business
DOI: https://doi.org/10.57110/jebvn.v4i1.248

Keywords:

Digital transformation, information technology, banking risks

Abstract

The proliferation of information technology presents numerous challenges to the financial stability of banks. Based on a dataset encompassing 11 joint-stock commercial banks in Vietnam from 2005 to 2020, this study investigates the influence of information technology adoption on the risk profile of commercial banks. The findings underscore a favorable impact of information technology integration in mitigating the risks associated with commercial banks, thus fostering greater stability within the banking system. Moreover, the research demonstrates the sensitivity of commercial bank risk to bank-specific factors, including factors such as bank size and return on equity. Notably, the study highlights the significance of enhancing human infrastructure and implementing internal information technology systems, particularly core banking, as pivotal measures for risk reduction. Given these insights, the authors provide valuable implications for governance strategies and management policies aimed at minimizing risks for commercial banks operating in the Vietnamese context.

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25-02-2024

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How to Cite

Cu Nguyen Ha Trang, Tran Linh Anh, Le Minh Anh, & Nguyen Thi Thu Huyen. (2024). Digital transformation: The impact of information technology application on the risks of commercial banks. VNU JOURNAL OF ECONOMICS AND BUSINESS, 4(1), 42. https://doi.org/10.57110/jebvn.v4i1.248

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Original Article