The Factors Affect Non-Performing Loansof Commercial Banks in Vietnam

• Main Authors: Nguyen Thi Thien Tam, 阮氏善心
• Other Authors: Jyh-Tay Su
• Format: Others
• Language: en_US
• Published: 102
• Online Access: http://ndltd.ncl.edu.tw/handle/gpn9f5

碩士 === 南台科技大學 === 商管專業學院 === 101 === The banking systems in Vietnam face many problems, and most of commercial banks have the same problem about the big non-performing loans. The study attempts to establish the determinants of non-performing loans in commercial banks in Vietnam using a regression model in a period 2005 to 2011, taking into account both macroeconomic variables and bank-specific variables. The data of commercial banks have into two categories: state-owned commercial banks and joint-stock commercial banks for a period of 7 years have been selected. Bank size, growth total loans, return on assets, return on equity, total loan to total assets, and total equity to total assets are the main bank-specific determinants of non-performing loans in Vietnam. Meanwhile, macroeconomic variables have GDP growth rate, inflation rate, and real interest rate. For state-owned commercial banks, real interest rate has strong effected on nonperforming loans; total loan to total assets, total equity to total assets, return on equity and bank size have direction with non-performing loans. For joint-stock commercial banks, real interest rate and total equity to total assets have a positive relationship with non-performing loans, while total loan to total assets, GDP growth rate and inflation rate have a negative on non-performing loans.