Internationalization and geopolitical risk: impacts on bank profitability and risk
DOI:
https://doi.org/10.17811/ebl.15.2.2026.70-82Keywords:
internationalization, geopolitical risk, Bank risk, profitabilityAbstract
This study examines the effects of internationalization and geopolitical risk on the profitability and risk of Vietnamese commercial banks, using 549 observations from 2008 to 2023 and applying OLS, FEM, REM, and GMM estimators. Results indicate that both internationalization and geopolitical risk reduce bank risk. However, internationalization negatively affects profitability, while geopolitical risk has a positive impact. The study also highlights the trade-off between profitability and stability in the context of international engagement. These findings provide policy implications for balancing global expansion and financial resilience, offering insights relevant to Sustainable Development Goals (SDGs) 8, 9, and 16.
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