What the study found
Several bank-specific and macroeconomic factors are linked to non-interest income at Vietnamese commercial banks. The study reports positive associations for bank size, deposit-to-asset ratio, credit risk provision ratio, income diversification, inflation, and the COVID-19 pandemic, and negative associations for loan-to-asset ratio and state ownership.
Why the authors say this matters
The authors conclude that these findings can inform policy implications aimed at improving banks’ operational efficiency. The study suggests that understanding which factors are associated with non-interest income may help explain how Vietnamese commercial banks generate this income.
What the researchers tested
The researchers reviewed theoretical foundations and prior domestic and international literature on non-interest income, standard financial indicators, and related research gaps. They then built a framework and empirical model for Vietnam and tested it using an unbalanced panel dataset of 24 Vietnamese commercial banks from 2011 to 2023.
What worked and what didn't
Several panel regression models were estimated, and after specification tests the random-effects model was selected. Feasible Generalized Least Squares was used to address error variance issues. The results show positive effects for bank size, deposit-to-asset ratio, credit risk provision ratio, income diversification, inflation, and COVID-19, while loan-to-asset ratio and state ownership have negative effects; 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’s Vietnam-specific sample and time period. The findings are based on 24 banks in Vietnam from 2011 to 2023, so the scope is limited to that context.
Key points
- 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 in the model.
- The study used an unbalanced panel dataset of 24 Vietnamese commercial banks from 2011 to 2023.
- The random-effects model was selected after specification tests, and FGLS was used to address error variance.
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
Get the weekly research newsletter
Stay current with peer-reviewed research without reading academic papers — one filtered digest, every Friday.