Credit Growth: An Investigation of Vietnamese Commercial Banks

This study assesses the factors affecting the credit growth of Vietnamese commercial banks in the period 2012–2020. The study uses the Bayesian regression model via the Metropolis-Hastings sampling algorithm to estimate the results based on annual panel data of 17 commercial banks listed on the Vietnamese stock market. The research results show that the factors that positively impact credit growth include deposit growth, net interest margins ratio (NIM), and GDP growth. Factors that have the opposite effect are non-performing loans, bank size, and inflation. From the findings of this study, bank administrators will have a basis to decide the appropriate credit growth rate and add value to the bank’s shareholders.