Factors Affecting Credit Growth of Vietnamese Commercial Banks

Thanh Tung Diep; Van Thuan Nguyen

Factors Affecting Credit Growth of Vietnamese Commercial Banks

Thanh Tung Diep, Van Thuan Nguyen

Abstract

This research analyzes the factors that affect the credit growth
of the Vietnamese commercial banking system. This study use
data from the annual reports and financial statements of 16
commercial banks listed on the HOSE, HNX, and UPCOM
exchanges that have operated continuously from 2011 to 2020.
Two linear regression models were employed with two dependent
variables: the credit growth rate and credit size. The findings
indicate that credit size in the previous period, the annual
growth rate of capital mobilization, bank size, and return on
assets (ROA) positively affect the credit growth of Vietnamese
commercial banks while liquidity ratio negatively affects them.
Also, the bad debt ratio’s effect on credit growth is unclear. Hence,
some suggestions and recommendations are given for commercial
banks to maintain stable, safe, and sustainable credit growth.

JEL Classification: G21, E50, E52

Keywords

credit growth; bank; finance

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DOI: 10.15408/etk.v21i2.25559