| dc.description.abstract | One of the main goals of the financial sector in particular, and the economy as a whole,
is credit growth. In the midst of the global recession following the Covid-19 pandemic
and an unpredictable geopolitical landscape, Vietnam's economy continues to generate
encouraging signs of recovery. Thus, in order to enhance the standard of the banking
sector's operations and support economic growth, the Prime Minister has established a
target to promote credit expansion. This article assesses the state of loan growth and
examines at the variables influencing the credit expansion of commercial banks in
Thailand and Vietnam between 2010 and 2022. The author analyzed the influence of
two categories of factors, internal and external, on the rate of bank credit growth using
information from the annual financial reports of twenty-three Vietnamese commercial
banks and nine Thai commercial banks. The study applies 4 econometric models
including OLS Model, Fixed Effects Model, Random Effects Model and Generalized
Least Squares Estimation Model combined with balanced panel data. The findings
indicate that banks' loan growth performance is positively affected by deposit growth,
economic growth, bank size and liquidity. Conversely, non-performing loan, lending
interest rates and are not favorable to the expansion of credit. Furthermore, the author
draws the conclusion that Vietnam saw a greater credit expansion than Thailand during
the study period. | en_US |
