Artikel

Does leverage fit non-performing loans in the COVID-19 pandemic – evidence from the Vietnamese banking system

The study aims to estimate the effect of leverage on non-performing loans in Vietnamese commercial banks from 2010 to 2020. This article uses qualitative (expert interviews, namely senior credit officers' and credit managers' surveys to find out the expert consensus coefficient) and quantitative research methods (Generalized Method of Moments to solve the endogeneity). The findings show that leverage is a statistically significant factor and negatively affects non-performing loans. In line with corporate governance theories, such as agency theory and stakeholder theory, this study emphasizes the significant role of the leverage ratio in dealing with non-performing loans at commercial banks in Vietnam during the COVID-19 pandemic. Besides, the study also highlights effective mechanisms to control and mitigate non-performing loans in the credit granting process.

Language
Englisch

Bibliographic citation
Journal: Cogent Business & Management ; ISSN: 2331-1975 ; Volume: 9 ; Year: 2022 ; Issue: 1 ; Pages: 1-17

Classification
Management
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Business Administration: General
Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
Subject
COVID-19
Vietnam
non-performing loans
commercial banks
leverage ratio
SGMM

Event
Geistige Schöpfung
(who)
Trung, Nguyen Kim Quoc
Event
Veröffentlichung
(who)
Taylor & Francis
(where)
Abingdon
(when)
2022

DOI
doi:10.1080/23311975.2022.2119675
Last update
2025-03-10T11:42:55+0100

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Trung, Nguyen Kim Quoc
  • Taylor & Francis

Time of origin

  • 2022

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