What the study found
The study found that different bank-specific and macroeconomic factors are linked to non-interest income at Vietnamese commercial banks. In particular, some factors were positively associated with non-interest income, while others were negatively associated with it, and a few were not statistically significant.
Why the authors say this matters
The authors conclude that the findings offer policy implications to improve banks’ operational efficiency. The study suggests that identifying which factors are associated with non-interest income may help guide bank management and policy for Vietnamese commercial banks.
What the researchers tested
The researchers reviewed theoretical and prior literature on non-interest income, which is income a bank earns from sources other than interest. They then built a framework and empirical model for Vietnam using an unbalanced panel dataset of 24 Vietnamese commercial banks from 2011 to 2023, estimated several panel regression models, selected a random-effects model after specification tests, and used Feasible Generalized Least Squares to address error variance issues.
What worked and what didn't
Bank size, deposit-to-asset ratio, credit risk provision ratio, income diversification, inflation, and the COVID-19 pandemic showed positive effects on non-interest income. Loan-to-asset ratio and state ownership showed negative effects, while equity ratio and real GDP growth were not statistically significant.
What to keep in mind
The abstract does not describe detailed limitations beyond the study being focused on 24 Vietnamese commercial banks and the 2011 to 2023 period. The summary also does not specify how the measured associations should be interpreted beyond the reported model results.
Key points
- The study examined non-interest income in 24 Vietnamese commercial banks from 2011 to 2023.
- Bank size, deposit-to-asset ratio, credit risk provision ratio, income diversification, inflation, and COVID-19 were positively associated with non-interest income.
- Loan-to-asset ratio and state ownership were negatively associated with non-interest income.
- Equity ratio and real GDP growth were not statistically significant.
- The authors say the findings have policy implications for improving operational efficiency.
Disclosure
- Research title:
- Several bank and macroeconomic factors affect non-interest income
- Authors:
- Nguyen Phuc Quy Thanh
- Publication date:
- 2026-02-26
- OpenAlex record:
- View
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