The Relationship between Commercial Banks Characteristic and Economic Growth in Vietnam

Abstract

This paper examines the relationship between commercial banks' characteristics and economic growth in Vietnam using the FEM and REM models to test the effect of commercial bank characteristics on economic growth in Vietnam. Using a panel dataset of 28 commercial banks from 2010 to 2021, we investigate the impact of bank characteristics on economic growth and provide some important findings. Our findings show that bank characteristics significantly affect economic growth. These results suggest that policymakers should focus on controlling banks’ activities to support economic growth in Vietnam. Overall, this study contributes to the existing literature on the role of commercial banks in promoting economic growth in developing countries like Vietnam.