Issue: Số 27 - Tháng 9 - 2026Tài chính - Ngân hàng - Bảo hiểm
The impact of income diversification on commercial bank liquidity: Evidence from ASEAN-5 countries
Published: October 23, 2026
Abstract
This study examines the impact of income diversification on the liquidity of commercial banks in the ASEAN-5 countries, comprising Vietnam, Indonesia, Malaysia, the Philippines, and Thailand. An unbalanced panel dataset of 490 observations from 52 banks over the 2011 - 2025 period is analyzed using the System Generalized Method of Moments (System GMM). Bank liquidity is measured using two alternative measures, including and excluding off-balance-sheet activities. The results show that income diversification and bank size have positive effects on liquidity under both measures, whereas asset growth and inflation have negative effects. The effect of the loan ratio is inconsistent across the two liquidity measures, while GDP growth has a statistically significant effect in only one model.
Keywords
income diversificationbank liquiditySystem GMMASEAN-5commercial banks
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