Determinants of bank performance: Evidence from the commercial banks in Vietnam

Tien Duc Ngo ,Ha Thu Phung

doi:10.24294/jipd10205

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Determinants of bank performance: Evidence from the commercial banks in Vietnam

Tien Duc Ngo

Ha Thu Phung

Journal of Infrastructure Policy and Development 2024, 8(16), 10205; https://doi.org/10.24294/jipd10205

Submitted：09 Nov 2024

Accepted：03 Dec 2024

Published：18 Dec 2024

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Abstract

This study analyzes the influence of five primary factors—inflation, capital ratio, deposits, non-performing loans, and bank size—on the performance of banks in Vietnam. Our sample encompasses 26 commercial banks from 2014 to 2023. The analysis incorporates data sourced from commercial banks’ financial statements and annual reports. Our findings indicate that banks with higher capital ratios and sizes generally exhibit superior performance. Moreover, inflation positively influences the performance of Vietnamese commercial banks throughout the selected timeframe. In contrast, non-performing loans and deposits are inverse to bank performance. Our findings offer novel insights into the factors influencing bank performance in a growing economy like Vietnam, along with recommendations for Vietnamese commercial banks and the State Bank of Vietnam to implement effective methods to improve bank performance.

Keywords

Penal research

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