The nexus between economic uncertainty and bank's profitability_the moderating role of financial openness

This study evaluates the impact of economic uncertainty on commercial bank profitability. In addition, this research also assesses the moderating role of financial openness through estimation using the FGLS regression method for a sample of 26 Vietnamese commercial banks from 2010 to 2022. The research results indicate that economic uncertainty enhances bank profitability. Financial openness plays a moderating role in this relationship, whereby the greater the financial openness of the economy, the weaker the impact of economic uncertainty on bank profitability. Empirical evidence from various robustness tests suggests that commercial banks may exploit the benefits of economic financial openness to augment their operational efficiency.