Determinants of Net Interest Margin in Commercial Banks in Viet Nam

Abstract

This riveting study dives into the dynamics of net interest margin (NIM) within Vietnam’s commercial banking sector from 2007-2018, offering fresh perspectives by considering factors like mergers and foreign ownership ratios. Our findings unveil a positive correlation between NIM and variables such as credit risk, risk aversion, loan-to-customer ratio, implicit interest rate, foreign equity ratio, and inflation. Conversely, NIM takes a hit with better management efficiency, during mergers, and in times of economic crises. Interestingly, ownership and GDP growth rate remain neutral, showing no influence on NIM.This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium provided the original work is properly cited.