TAILIEUCHUNG - Factors affecting net interest margin of joint-stock commercial banks in Vietnam

The paper uses the secondary data of 26 banks with 182 observations for the period of 2008–2014 and applies the panel data regression method. The empirical results indicate that lending scale, credit risk, capitalization, and interest rate have positive impacts on net interest margin. | 92 Pham Hoang An & Vo Thi Kim Loan. / Journal of Economic Development 24(1) 92-103 Factors affecting net interest margin of joint-stock commercial banks in Vietnam PHAM HOANG AN Van Hien University – VO THI KIM LOAN Saigon University – ARTICLE INFO ABSTRACT Article history: This study analyzes factors affecting net interest margin of joint-stock commercial banks in Vietnam. The paper uses the secondary data of 26 banks with 182 observations for the period of 2008–2014 and applies the panel data regression method. The empirical results indicate that lending scale, credit risk, capitalization, and interest rate have positive impacts on net interest margin. In contrast, managerial efficiency has a negative effect on net interest margin. However, bank size and loan to deposit ratio are statistically insignificant to net interest margin. Received: Sep. 8, 2016 Received in revised form: Dec. 8, 2016 Accepted: Dec. 31, 2016 Keywords: Net interest margin Joint-stock commercial banks Panel data Vietnam Pham Hoang An & Vo Thi Kim Loan. / Journal of Economic Development 24(1) 92-103 1. Introduction The efficiency of banking operations has always been a problem of great concern to bank managers, as it is the key to sustainable profit, which enables the bank to develop and compete in the international environment. A competitive banking system will create a higher efficiency and a lower NIM (Rudra & Ghost, 2004). High profit return ratio creates significant obstacles to intermediaries, such as more savings encouraged by lower borrowing interest rate and reduced investment opportunities of the banks as a result of higher lending rate (Fungáčová & Poghosyan, 2011). Therefore, banks expect to be doing their intermediate functionality with the lowest cost possible to promote economic growth. 93 this study can serve as a scientific basis for bank managers to make suitable decisions, bring good efficiency, and increase the .

• Ngân hàng - Tín dụng
• Net interest margin
• Joint stock commercial banks
• Panel data Vietnam
• Credit risk
• Managerial efficiency
• Determinants of net interest margin
• Net interest margin Commercial banks in Vietnam
• Commercial banks
• The recession period
• Generation private banks
• Net interest income
• Spread and burden of banks
• Well organized system of banking
• Debt equity ratio
• Gross profit margin
• Net profit margin
• Time interest earned
• Current ratio
• Probability default
• Macro Variables
• Endometrial Stem
• Cells and Endometriosis
• Recent Research Trends
• Endometriosis Associated
• Ovarian Cancer
• Revenue diversification
• Total assets
• Commercial bank
• Association of Southeast Asian Nations
• Non performing loans
• Net interest margin rates
• Return on assets
• 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
• Vietnamese commercial banks
• Top priority of banking operation
• Aggressive lending strategies
• Bonds issuance
• Banking performance
• Banking crisis
• Bank capital affects profitability
• Two step GMM
• Return on equities
• Impact of the external
• Internal factors of bank performance
• Indian commercial banks
• Determinants of capital adequacy ratio of Vietnamese commercial banks
• Capital adequacy ratio of Vietnamese commercial banks
• The Net interest margin