Impact of green credit policy on the financial performance of Vietnamese commercial banks

VU PHUONG ANH

Eng 02-K63-BZM.A, Faculty of Business Administration, Foreign Trade University

Email: [email protected]

Abtrasct

The paper uses three proposed models to investigate changes in financial performance caused by the implementation of green credit policies in 2015, based on panel data of 6 commercial banks in Viet Nam from 2007 to 2023. In Stata 14.2, the mediating mechanism of green credit's impact on commercial banks' profit is examined and tested through the use of the “medsem” package, Fixed Effect Model (FEM), and Random Effect Model (REM). The study's findings demonstrate how green credit policies can lower profits for Vietnamese commercial banks. However, by lowering cost-to-income and nonperforming loans (mediating variables), Viet Nam's commercial banks were able to increase their profits. In order to encourage banks to adopt green credit and achieve sustainable development, the government should continue to improve green credit policies.

Keywords: Green credit policy, commercial bank performance, profit, financial performance

This article was published in the Vietnam Economic&Financial Review, Vol 1, Issue 2, December 2025)

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