CREDIT GROWTH OF VIETNAMESE COMMERCIAL BANKS IN THE CASE OF COVID-19 PANDEMIC

This study evaluates credit growth and analyzes factors affecting credit growth of Vietnamese commercial banks in the context of the Covid-19 pandemic. The study uses financial statement data from 25 Vietnamese commercial banks during the period from the 1st quarter  of 2018 to the 3rd quarter of 2021. The credit growth of the banks fluctuated and tended to decrease during the Covid-19 pandemic, especially from the beginning of 2021 to present when Vietnam faced significant outbreaks. The results from applying random effects model show that the Covid-19 pandemic had a negative impact on credit growth. In addition, financial capabilityalso negatively affected credit growth. In contrast, an increase of capital mobilization ability, profit rate, and profit margin led to the growth of credit.