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Factors affecting credit growth at Vietnam's joint stock commercial banks - 1


MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS

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NGO THI LE DIEM


Factors affecting credit growth at Vietnam's joint stock commercial banks - 1

FACTORS AFFECTING CREDIT GROWTH AT VIETNAM JOINT STOCK COMMERCIAL BANKS.


MASTER'S THESIS IN ECONOMICS


Ho Chi Minh City - 2019


MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS

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NGO THI LE DIEM


FACTORS AFFECTING CREDIT GROWTH AT VIETNAM JOINT STOCK COMMERCIAL BANKS


Major: Finance - Banking Major code: 8340201


MASTER'S THESIS IN ECONOMICS


SCIENTIFIC INSTRUCTOR: ASSOCIATE PROFESSOR, DR. PHAM VAN NANG


Ho Chi Minh City - 2019


COMMITMENT


I hereby certify that this is my own independent thesis. The data used for analysis in the topic have clear sources and have been published in accordance with regulations. The research results in the thesis are my own research, analysis, honesty, objectivity and are consistent with the reality of Vietnam. These results have never been published in any other research.


Ho Chi Minh City, date month year 2019


Topic author


INDEX


COVER PAGE STATEMENT OF GUARANTEE TABLE OF CONTENTS

LIST OF ABBREVIATIONS LIST OF FIGURES, TABLES SUMMARY

ABSTRACT

INTRODUCTION 1

1. REASONS FOR DOING THE TOPIC: 1

3. SUBJECTS AND SCOPE OF RESEARCH: 2

4. RESEARCH METHODS: 2

5. TOPIC STRUCTURE: 3

CHAPTER 1: OVERVIEW OF CREDIT GROWTH AND FACTORS AFFECTING CREDIT GROWTH AT VIETNAM JOINT STOCK COMMERCIAL BANKS 4

1.1. Bank credit activities 4

1.1.1. Concept of credit activities 4

1.1.1.1. Concept of bank credit 4

1.1.1.2. Characteristics of bank credit 4

1.1.2. Principles of credit activities 5

1.1.3. The role of commercial bank credit in the economy 5

1.1.3.1. Credit is a lever that contributes to economic growth and regulates the economy 5

1.1.3.2. Contribute to financing the reproduction, expansion and enhancement of fixed assets 6

1.1.3.3. Contribute to promoting businesses to improve capital efficiency 7

1.1.3.4. Bank credit promotes the circulation of goods and money 7

1.2. Credit growth: 8

1.2.1. Concept of credit growth 8

1.2.2. Impact of credit growth: 8

1.3. Factors affecting credit growth: 10

1.3.1. Macro factors 10

1.3.1.1. GDP growth: 10

1.3.1.2. Inflation 10

1.3.1.3. Nominal interest rate 10

1.3.2. Internal factors of the bank 11

1.3.2.1. Capital mobilization 11

1.3.2.2. Equity 11

1.3.2.3. Bad debt 11

1.3.2.4. Liquidity 12

1.4. Overview of research on factors affecting credit growth and proposed research model: 13

1.4.1. Research situation 13

1.4.1.1 For foreign research situation: 13

1.4.1.2 For domestic research situation: 14

1.4.2. Proposed research model 16

1.5 Chapter 1 Summary 17

CHAPTER 2: CURRENT STATUS OF FACTORS AFFECTING CREDIT GROWTH IN VIETNAM 18

2.1. Brief introduction to the Vietnamese joint stock commercial banking system 18

2.1.1 Overview of Vietnam's joint stock commercial banking system: 18

2.1.2. Research sample selection: 20

2.2. Current situation 20

2.2.1. Macroeconomic situation 20

2.2.1.1. GDP growth 20

2.2.1.2. Inflation 21

2.2.1.3. Nominal interest rate 22

2.2.2. Current status of Vietnam's joint stock commercial banking system 23

2.2.2.1. Credit growth 23

2.2.2.2. Debt to GDP ratio 24

2.2.2.3. Ratio of outstanding debt to total assets 25

2.2.2.4. Bad debt ratio 26

2.3 Chapter 2 Summary 27

CHAPTER 3: RESEARCH ON FACTORS AFFECTING CREDIT GROWTH AT VIETNAM JOINT STOCK COMMERCIAL BANKS 28

3.1. Research process 28

3.2. Research hypothesis 28

3.3. Research methods 33

3.3.1. Research data 33

3.3.2. Quantitative research 33

3.3.3. Data processing methods and performed tests 34

3.4 Chapter 3 Summary 36

CHAPTER 4: RESEARCH RESULTS 37

4.1. General assessment of credit growth status at commercial banks

Vietnam stock exchange 37

4.2. Data analysis 40

4.2.1. Description of research sample 40

4.2.2 Autocorrelation analysis 41

4.3.3 Testing regression hypotheses 41

4.3.4 Comparison between models on panel data: Pooled Regression, Fixed effects model, Random effects model 43

4.3. Research results 47

4.4. Chapter 4 Summary: 49

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 50

5.1. Conclusion 50

5.2. Solution 52

5.2.1. On the part of commercial banks: 52

5.2.2. On the part of the State Bank 53

5.3. Limitations and future research directions of the topic 54

5.4 Chapter 5 Summary 55

REFERENCES APPENDIX


LIST OF ABBREVIATIONS


Branch Office

Commercial Bank Commercial Bank

Joint Stock Commercial Bank

State Bank of Vietnam State Bank of Vietnam Ho Chi Minh City Ho Chi Minh City

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