Factors affecting credit performance at Vietnamese joint-stock commercial banks

Abstract

This study analyzes the internal factors influencing credit growth across 15 Vietnamese joint-stock commercial banks during the 2015-2024 period. By employing panel data analysis with Pooled OLS, Fixed Effects Model (FEM) and Random Effects Model (REM), the empirical results demonstrate that credit growth is significantly driven by bank size, deposit mobilization capacity, capital efficiency and equity structure. Conversely, liquidity factors do not appear to play a decisive role. The research highlights a distinct trade-off between credit expansion goals and capital adequacy requirements, particularly as banks face increasing pressure to comply with prudential standards. Consequently, this study provides valuable empirical evidence for both bank management and credit policy administration. Despite its contributions, the research acknowledges certain limitations regarding sample size, time frame and the exclusion of macroeconomic variables. Nevertheless, the findings help clarify the credit operational mechanisms in Vietnam and suggest future research directions involving longer time horizons, international scopes and the integration of macroeconomic factors.