Study Findings from Ho Chi Minh City Open University Provide New Insights into CDC and FDA (Sovereign Bond Holdings, Bank Risk-taking, and Macroeconomic Shocks: Evidence From Vietnam).

A study conducted by researchers at Ho Chi Minh City Open University in Vietnam examines the impact of purchasing sovereign bonds on bank risk in the Vietnamese banking sector. The study finds that banks that purchase securities issued by the domestic government tend to have lower risk, particularly during periods of crisis and uncertainty. The impact of sovereign bond holdings on bank risk is influenced by factors such as high-risk-weighted assets and low diversification. The findings of this study remain consistent across different measures of bank risk. [Extracted from the article]