ISSN: 2225-8329
Open access
This study conducts a quantitative study on the impact of revenue diversification on the profitability of 25 commercial banks currently operating in the Vietnamese market. The quantitative research results with the support of panel regression models such as pooled OLS, random effect model, fixed effect model and robustness enhancing techniques have revealed the negative impact of revenue diversification on the profitability of commercial banks. Interestingly, the impact varies across the banks’ ownership structure with the state-owned commercial banks experience leveraged influence. These research results provide a reliable empirical basis for proposing a number of solutions to enhance the profitability of Vietnamese commercial banks in future tailored to different bank types.
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