摘要：The study examines how loan growth affects performance of banks, in the form of credit risk, bank
profitability and bank solvency in Vietnam during the period from 2006 to 2017. Overall, the regression
results by both static and dynamic panel data models provide some evidence that loan
growth indicators could have the great impacts on bank performance. In particular, growth in lending
increases loan loss provisions from 2 to 3 subsequent years, lowers bank capital ratio the next
year; while bank profitability gains positive effects from loan growth both in the short term and
long term. These findings show the robustness when applying alternative estimation techniques.
The study emphasizes the importance of caution in expanding lending activities aggressively as
well as it provides implications for banks in terms of risk governance and capital management.
