Does COVID-19 affect non-performing loans at commercial banks in Vietnam?

Nguyen Kim Quoc Trung

International Journal of Procurement Management, 2024, vol. 20, issue 1, 33-46

Abstract: The paper aims to investigate the direct connection between COVID-19 and non-performing loans in Vietnamese commercial banks from 2011 to 2021. This article uses qualitative (expert interviews, namely senior credit officers' and credit managers' surveys to find the expert consensus coefficient) and quantitative research methods (generalised method of moments to solve the endogeneity) to define that COVID-19 is a statistically significant factor and positively affect non-performing loans. In line with financial accelerator theory, the author emphasises the significant role of the economic shock in amplifying the non-performing loans at commercial banks in Vietnam during the COVID-19 pandemic. Besides, the paper provides some managerial implications to control and mitigate non-performing loans in the credit granting process.

Keywords: COVID-19; commercial banks; non-performing loans; NPLs; generalised method of moments; GMM; Vietnam. (search for similar items in EconPapers)
Date: 2024
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