The impact of ownership structure and macroeconomic factors on the profitability of Vietnamese commercial banks

Abstract

This study investigates the influence of ownership structure and economic indicators on bank performance in Vietnam. Using panel data from 27 commercial banks from 2010 to 2022 and employing the Generalized Method of Moments (GMM), we examine the relationships between ownership structures, macroeconomic factors, and bank profitability. Results reveal that state ownership negatively affects bank performance. Besides, macroeconomic factors, such as GDP and inflation, demonstrate positive correlations with profitability. These findings provide crucial insights for policymakers and bank managers in optimizing ownership structures and adapting to macroeconomic changes, which are particularly relevant for emerging markets.