How Non – Interest Income Matters for Operation Efficiency? A Bayesian Analysis of Vietnam Banks

This study tries to determine how non–interest revenue may affect 30 commercial banks in Vietnam’s probability ratio between 2011 and 2020. Using the Bayesian regression technique, secondary data from 30 commercial banks was used to determine the effect of non–interest income on the probability ratio. Regression analysis reveals that non – interest revenue, bank size, debt to equity ratio, operational expenses, deposit rate, and inflation have a positive and statistically significant impact on the operating performance of Vietnamese commercial banks. In contrast, neither the GDP growth rate nor the provision for bad debts have a statistically significant impact on the profitability of Vietnam’s commercial banks.