Factors Affecting Credit Growth of Vietnamese Joint Stock Commercial Banks

Abstract

The article analyzes the determinants of credit growth of 29 joint stock commercial banks in Vietnam from 2008 to 2020. With the fixed effects model (FEM), the random effects model (REM) and the pooled regression model (Pooled OLS), the author chooses the REM model as the most suitable model. Then, by the GMM regression method, the authors identified the factors affecting credit growth during the research period. The factor of return on equity, industry index and growth rate of money supply positively impact the credit market. The factors that harm the credit market are the size of the bank, the economic growth rate and the inflation rate. Managers, investors, policymakers, and bank administrators can use the research results as helpful reference in making investment decisions and setting policies for commercial banks.