Factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam

Thanh Ngo; Vinh Le; Hai Le

doi:10.15549/jeecar.v8i2.666

Factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam

Authors

Ngo Phu Thanh https://scholar.google.com/citations?user=kJaOBsIAAAAJ&hl=en&authuser=1
Le Hoang Vinh
Le Phuoc Hai

DOI:

https://doi.org/10.15549/jeecar.v8i2.666

Keywords:

factors, credit risk, U-shape

Abstract

This paper studies factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam. Data is collected from audited financial statements of 23 banks, and macroeconomic data from General Statistics Office of Vietnam in the period of 2009 – 2019. This paper uses GMM method which is carried out by using R programing language in Jupyter Notebook. The findings show that lagged credit risk, profitability and inflation have positive effects on credit risk, while bank capital, bank size, economic growth and loans to deposits ratio have negative ones. In addition, the findings also show that the nonlinear effects of loan growth on credit risk with U shape relationship, and this paper also calculates the relative importance of each variable.

References

Cabell Publishing, Cabell's Directory of Publishing Opportunities in Economics and Finance. 10th edition. Cabell Pub. Co. Available through the WIU Libraries' databases page.

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Published

2021-06-13

How to Cite

Ngo, T., Le, V., & Le, H. (2021). Factors affecting credit risk in lending activities of joint-stock commercial banks in Vietnam . Journal of Eastern European and Central Asian Research (JEECAR), 8(2), 228–239. https://doi.org/10.15549/jeecar.v8i2.666

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Issue

Vol. 8 No. 2 (2021): Journal of Eastern European and Central Asian Research

Section

Manuscripts

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