Influence of macro and micro factors on credit growth of commercial banks

Abstract

Bank credit growth plays an important role in economic activity in Vietnam. However, recent credit growth has shown signs of slowing down. In order to answer the question of why credit growth tends to be slower, the paper analyzes the impact of micro and macroeconomic factors on credit growth of banks and also shows the effect of Bank-related factors such as bad debt, ability to mobilize deposits, profit margins and performance of banks to credit growth.