Impact of non-interest income on Bank profitability and risk in Vietnam

Abstract

This study examines the impact of non-interest income on bank profitability and risk in Vietnam during 2005-2014. In addtion, other factors are also investigated as control variables in the study. Using panel data of 34 banks in 10 years, the study employs estimation methods such as Pooled OLS, FEM, REM and PCSE. It is found that non-interest income can increase bank profitability as well as bank risks. Other determinants of bank profitability and risks can be bank size, net interest margin (NIM), loans to assets ratio, leverage ratio, cost income ratio, and GDP in 2005-2014

Keywords

• thu nhập phi truyền thống
• ngân hàng thương mại (nhtm)
• rủi ro
• khả năng sinh lời của ngân hàng