Factors affecting Non-Performing Loans (NPLs) of banks: The case of Vietnam

Vo Minh Long (), Nguyen Thi Yen and Pham Dinh Long
Additional contact information
Vo Minh Long: Ho Chi Minh City Open University, Vietnam
Nguyen Thi Yen: Ho Chi Minh City Department of Finance, Vietnam
Pham Dinh Long: Ho Chi Minh City Open University, Vietnam

HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 2020, vol. 10, issue 2, 83-93

Abstract: This study aims to identify factors affecting Non-Performing Loans (NPLs) of commercial banks in Vietnam. To address the research problem, data of commercial banks in Vietnam from 2008 to 2017 were collected. This study applied a fixed-effects model in comparison with a random-effects model on a panel data of 200 observations. Results from the firmly fixed-effects model indicated that NPLs were positively affected by its lag of the previous year, capital structure, and interest rate. Additionally, returns on asset, inflation rate, and credit growth were found to have negative impacts on NPLs. However, impacts of firm size and gross domestic product were not found across the models. Based on the results, this research suggested several policy recommendations for the management of NPLs in the commercial banks.

Keywords: Non-Performing Loans; longitudinal data; commercial banks; firmly fix-effects model (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/967/784 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bjw:econen:v:10:y:2020:i:2:p:83-93

DOI: 10.46223/HCMCOUJS.econ.en.10.2.967.2020

Access Statistics for this article

HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION is currently edited by Nguyen Thuan

More articles in HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION from HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY
Bibliographic data for series maintained by Vu Tuan Truong ().