Factors affecting the credit growth of commercial banks in Vietnam

ABSTRACT:

This study evaluates the impact of internal and macro factors on credit growth of commercial banks in Vietnam. The study's data is collected from the financial statements of 23 Vietnamese commercial banks from 2016 to 2021 and macro data is collected from Thomson Reuters, World Bank and General Statistics Office of Vietnam. Regression methods for panel data including POOL, FEM, REM and FGLS are used for data analysis and model testing. With the FGLS method, the results show that 3/8 independent variables have an impact on the credit growth at Vietnamese commercial banks. Based on these results, some recommendations for the reasonable credit growth of Vietnamese commercial banks are made.

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KEYWORDS: panel data, banks, growth, credit, commercial bank.

Authors: Le Vu Ha, Do Van Loc (2022)

Viet Nam trade and industry review, ISSN: 0866-7756, No. 14 (6/2022), pp 362 – 369