Factors Affecting the Non-Interest Income of Commercial Banks in Vietnam

Abstract

The paper aims to analyze the factors affecting the non-interest income of 25 Vietnamese commercial banks during 2009-2020 using OLS, FEM, REM, and SGMM models. The findings reveal that bank size (SIZE), return on assets (ROA), bank risk (Z SCORE), cost (COST), and credit size (LOAN) have positive effects on non-interest income. Besides, customer deposits (DEPO), liquidity (LIQ), net interest margin (NIM), and inflation (LP) have negative relationships with non-interest income while growth rate (GDP) has an insignificant effect on non-interest income during 2009-2020. Based on our main findings, some management policies are suggested to improve non-interest income performance for commercial banks in Vietnam.