Title: The impact of the COVID-19 pandemic and its moderating effect on bank profitability

Authors: Phan Dinh Nguyen

Addresses: HUTECH University, 475A Dien Bien Phu Road, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam

Abstract: The impact of the COVID-19 has been greatly studied but the moderating effect of the COVID-19 on bank profitability has been paid little attention. This paper, therefore, examines the impact of the COVID-19 pandemic and its moderating effect on banks' profit by employing data of 35 banks operating in Vietnam between 2005 and 2022. We use the system generalised method of moment and structural equation modelling to estimate regressions to explain the impacts. We contribute to the existing literature by analysing the impact of the pandemic and its moderating effect on banks' profit. Our findings show that the pandemic is negatively correlated to banks' profit and the pandemic has the moderating effect through non-performing loans, bank size, bank equity, and ownership.

Keywords: COVID-19 pandemic; impact; bank profitability; Vietnam.

DOI: 10.1504/GBER.2025.147174

Global Business and Economics Review, 2025 Vol.33 No.1, pp.24 - 40

Received: 25 Aug 2023
Accepted: 30 Dec 2023
Published online: 11 Jul 2025 *

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