TAILIEUCHUNG - Determinants of net interest margin of commercial banks in Vietnam

Determinants of net interest margin of commercial banks in Vietnam. This study provides an insight into the determinants of net interest margin (NIM) of commercial banks in Vietnam during the recession period. We employ secondary data collected from published audited consolidated financial reports of Vietnamese commercial banks from 2008, the year marking the outbreak of the global financial crisis, to the end of 2012. | Journal of Economics and Development, , , August 2015, pp. 69-82 ISSN 1859 0020 Determinants of Net Interest Margin of Commercial Banks in Vietnam Hoang Trung Khanh Albert-Ludwigs-Universität Freiburg, Germany Email: khanhhoangtrung@ Vu Thi Dan Tra Foreign Trade University, Vietnam Email: Abstract This study provides an insight into the determinants of net interest margin (NIM) of commercial banks in Vietnam during the recession period. We employ secondary data collected from published audited consolidated financial reports of Vietnamese commercial banks from 2008, the year marking the outbreak of the global financial crisis, to the end of 2012. Altogether, the data constitute 175 panel-data observations. The regression using the ordinary least squares method yields the result that operating expense, management quality, risk aversion, and inflation rate have a positive effect on NIM, while the banking sector’s market concentration affects NIM negatively. Afterwards, some policy implications are derived from those findings to mitigate and put NIM under control, so that the efficiency of the financial intermediary system can be developed. Keywords: Determinants; net interest margin; commercial banks. Journal of Economics and Development 69 Vol. 17, , August 2015 1. Introduction transferred across the financial intermediaries at a slight expense. On the other hand, a too low NIM causes damage to banks’ profitability (Zuzana and Tigran, 2008). Here exists a conflict of interest between policymakers, whose objective is to optimize the society’s benefit, and bankers, who aim at maximizing profits. Because of this dilemma, there have been plenty of studies on NIM and its determinants around the world in the last three decades, for example Demirgüç-Kunt and Huizinga (1999), Maudos and Fernández de Guevara (2004), Zuzana and Tigram (2008) to name a few. However, such research is still unavailable in Vietnam, .

• Ngân hàng - Tín dụng
• Determinants of net interest margin
• Net interest margin Commercial banks in Vietnam
• Commercial banks
• The recession period
• Macro Variables
• Endometrial Stem
• Cells and Endometriosis
• Recent Research Trends
• Endometriosis Associated
• Ovarian Cancer
• Return on assets
• Net interest margin
• Rate of inflation
• Foreign ownership
• Private ownership
• Profitability bank
• Return on asset
• Return on equity
• Non Performing loan
• Capital adequacy ratio
• Loan to deposit ratio
• Determinants of capital adequacy ratio of Vietnamese commercial banks
• Capital adequacy ratio of Vietnamese commercial banks
• Vietnamese commercial banks
• The Net interest margin
• Monetary policy and financial support
• Small and medium enterprises in Vietnam
• Small and medium enterprises
• Vietnam post period of global recession
• Encourage MSEs‟ growth