Title: Does COVID-19 affect non-performing loans at commercial banks in Vietnam?

Authors: Nguyen Kim Quoc Trung

Addresses: Faculty of Accounting – Auditing, University of Finance – Marketing, Vietnam

Abstract: The paper aims to investigate the direct connection between COVID-19 and non-performing loans in Vietnamese commercial banks from 2011 to 2021. This article uses qualitative (expert interviews, namely senior credit officers' and credit managers' surveys to find the expert consensus coefficient) and quantitative research methods (generalised method of moments to solve the endogeneity) to define that COVID-19 is a statistically significant factor and positively affect non-performing loans. In line with financial accelerator theory, the author emphasises the significant role of the economic shock in amplifying the non-performing loans at commercial banks in Vietnam during the COVID-19 pandemic. Besides, the paper provides some managerial implications to control and mitigate non-performing loans in the credit granting process.

Keywords: COVID-19; commercial banks; non-performing loans; NPLs; generalised method of moments; GMM; Vietnam.

DOI: 10.1504/IJPM.2024.137792

International Journal of Procurement Management, 2024 Vol.20 No.1, pp.33 - 46

Received: 06 Jun 2022
Accepted: 18 Feb 2023
Published online: 05 Apr 2024 *