FACTORS AFFECTING BAD DEBT RATIO AT JOINT STOCK COMMERCIAL BANKS IN VIETNAM

This study analyzes factors affecting bad debt ratio at joint-stock commercial banks in Vietnam. The research collected data from reports of 26 Vietnamese joint-stock commercial banks operating continuously from 2010  to 2020. The research results show the bank size and ratio, bad debt in the previous year, and provision for credit risks had a positive effect on the bad debt ratio of banks. At the same time, the research results show that the inflation rate, unemployment rate, and exchange rate negatively affect the bad debt ratio of banks. In addition, the research results show that GDP growth, credit growth, bank profitability, and nominal interestrates show no clear impacts on the bad debt ratio of banks. From obtained results, the study proposes suggestions and recommendations to limit the bad debt ratio of banks.