FACTORS AFFECTING THE PROFITABILITY OF COMMERCIAL BANKS IN VIET NAM

Abstract

The present paper seeks to examine the deteminants of Vietnam banks profitability during the period 2009-2016. The empirical findings suggest that bank profitablity have been impacted by internal factors and external factors. Internal factors includes size, credit risk, non-interest income, non-interest expense, ratio of stockholder’s capital per total assets. External factors concludes economic growth and inflation. Using the panel data regression, the results provided that size, credit risk, non-interest income, non-interest expense, ratio of stockholder’s capital per total assets, economic growth and inflation have a positive significant impact on bank profitability. Therefore, the papers suggest some solutions to increase profitability of the commercial bank in Vietnam in the future.