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ABSTRACT
This paper analyzes the determinants of NPLs and the impact of NPLs on bank profitability in Vietnam during the period 2005–2020 via panel data estimation techniques. Our findings show that bank profitability, bank size and economic booming improve NPLs while operating cost, loan loss provisions and macro factors deteriorate NPLs. Economic booming, economies of scale and bank returns improve loan quality while higher policy rates, poor loan monitoring and credit risk deteriorate it. The COVID-19 pandemic affects NPLs but its impact is still not visible and hence the postponed effect.
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Notes on contributors
Phan Dinh Nguyen
Phan Dinh Nguyen is an Associate Professor and Vice President at Ho Chi Minh City University of Technology (HUTECH) in Vietnam. He received his PhD in 2008 at the University of Adelaide in Australia. His research interests include finance and management.