Impact of internal factors on non-performing loans of Vietnamese commercial banks

Abstract

The primary objective of this study was to explore the impact of internal factors on non-performing loans (NFL) of commercial banks in Vietnam. The study used secondary data collected from consolidated financial statements and annual reports of 22 commercial banks during a ten-year period from 2006 to 2015. The use of 220 observations and panel data regression analysis with NFLs as dependent variables in the study helped to point out six out of seven internal factors affecting banks’ NFLs. These results of empirical research revealed that bank managers and policymakers should focus on internal factors to improve operational efficiency, lower NFLs and ensure financial health for Vietnamese commercial banks.

Keywords

• hồi qui dữ liệu bảng
• ngân hàng thương mại
• nợ xấu
• việt nam