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Title: Enhancing bank performance through loan performance: the role of technology and internal control in credit risk management in Vietnam

Authors: Nguyen Kim Quoc Trung

Addresses: Faculty of Accounting and Auditing, Ho Chi Minh City Open University, 35-37 Ho Hao Hon, Cau Ong Lanh Ward, Ho Chi Minh City, Vietnam

Abstract: This study assesses the impact of credit risk management, internal control effectiveness, and technology application on loan performance and how they affect bank performance. At the same time, the study also examines the moderating role of the level of digital transformation in the relationship between loan performance and bank performance. Mixed method research is used, in which qualitative data helps build a scale, and quantitative data is analysed using partial least squares structural equation modelling (PLS-SEM). The results show that all three factors significantly impact loan performance, positively affecting bank performance. In addition, the level of digital transformation strengthens the relationship between loan performance and banking performance, demonstrating the positive regulatory role of technology in the modern context. The research enriches the theoretical system and integrates factors such as technological development, internal control, and credit risk management, which has important practical significance for commercial banks to improve the quality of credit.

Keywords: bank performance; credit risk management; digital transformation; loan performance; Vietnam.

DOI: 10.1504/IJEBR.2026.153849

International Journal of Economics and Business Research, 2026 Vol.30 No.5, pp.24 - 42

Received: 19 Nov 2024
Accepted: 16 Jun 2025
Published online: 28 May 2026 *