Power of chief executive officer and credit risk: Evidence in Vietnam commercial banks

Abstract:

The CEO is considered the captain of the bank, and his strength is shown by his share ownership rate, prestige and experience. The CEO’s leadership ability affects the bank’s performance. This article was conducted to understand the impact of CEO power on credit risk. The research sample includes 18 Vietnamese commercial banks from 2013 to 2023, taken from audited financial statements. Research data are processed using Pooled OLS, FEM, REM and FGLS methods. The results of the study show that the strength of the CEO is measured by the level of education, which has the opposite impact on credit risk, bank size, lending, liquidity and capital have the same impact on the bank’s credit risk.