Abstract
The paper examines the factors affecting the lending behavior of commercial banks by using panel data of Vietnam's listed commercial banks on two stock exchanges, namely the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) from 2009 to 2018. According to the results of the regression analysis, the GDP has a positive and significant influence on bank lending, whereas the liquidity ratio (LIR), management quality (MQR), and cash reserve ratio (RRR) all have a negative influence on bank loans (LOA). Moreover, operating expenses (OEA) and lending rates (LDR) do not appear to influence bank lending behavior. To prevent the occurrence of bad debt, the results recommend that banks work harder to increase deposits and exercise caution when making lending decisions.
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