Credit growth in the COVID-19 pandemic and non-performing loan: Case of commercial banks in Vietnam


Authors

  • Pham Mai Tram Ho Chi Minh City University of Industry and Trade
  • Huynh Xuan Hiep Ho Chi Minh City University of Industry and Trade
  • Nguyen Anh Tu Banking University of Ho Chi Minh City
DOI: https://doi.org/10.57110/vnu-jeb.v5i5.448

Keywords:

Credit growth, non-performing loan, COVID-19

Abstract

This study aims to clarify the empirical relationship between credit terms (loan maturity), credit growth during the COVID-19 pandemic period, and the Non-Performing Loan (NPL) ratio based on data collected from 21 commercial joint-stock banks in Vietnam from 2012 to 2023. The empirical results derived from the Generalized Method of Moments (GMM) estimation show that short-term loans have a positive impact (increasing) the NPL ratio, while the increase in medium- and long-term loans has an inverse impact (decreasing) the NPL ratio. Particularly, the study finds that credit growth during the COVID-19 pandemic period led to a reduction in the NPL ratio. Based on these empirical findings, a number of important policy implications for managing asset quality and credit risk are also thoroughly discussed in the paper.

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25-10-2025

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How to Cite

Pham Mai Tram, Huynh Xuan Hiep, & Nguyen Anh Tu. (2025). Credit growth in the COVID-19 pandemic and non-performing loan: Case of commercial banks in Vietnam. VNU JOURNAL OF ECONOMICS AND BUSINESS, 5(5), 30. https://doi.org/10.57110/vnu-jeb.v5i5.448

Issue

Vol. 5 No. 5

Section

Original Article

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