FACTORS AFFECTING NET INTEREST MARGINAL (NIM) OF JOINT STOCK COMMERCIAL BANKS IN VIETNAM

Abstract

The main purpose of the study is to find out the factors affecting Net Interest Margin (NIM) of Vietnamese joint stock commercial banks, especially in the period when Vietnam's economy is affected by Covid-19 pandemic from the 4th Quarter of 2019 to the end of the 2nd Quarter of 2021. The study uses panel data from separate financial statements at 25 joint-stock commercial banks in Vietnam during the above period and also uses Generalized Method of Moments (GMM) to analyze the factors affecting the Net Interest Margin of joint stock commercial banks in Vietnam. The research results show that Return on Equity (ROE), Scale of Equity (CAP), Bank Size (SIZE), Operating Expense Ratio (OP) have a positive impact, statistically significant with Net Interest Margin (NIM). Meanwhile, Liquidity Ratio (LIQ) has a negative and statistically significant effect on the Net Interest Margin (NIM). (LOAN), Inflation Rate (INF) and Real GDP Growth (GDP) impact but are not statistically significant with the Net Interest Margin (NIM) in this study.