Factors affecting the development of non-credit services: a case study of commercial banks in Ho Chi Minh City

Abstract

In the context of complicated developments in the financial market, credit activities are too risky. The credit revenues are still very volatile; commercial banks must accelerate non-credit services to increase their revenues. Besides, non-credit service development has become one of the goals of the commercial banking system restructuring program. However, compared to other countries in the region and worldwide, the product of financial services in general and non-credit services, particularly in Vietnam, is still too far away, requiring concentration. All resources for investment and growth. Therefore, this study determines the factors affecting commercial banks’ non-credit services in Ho Chi Minh City (HCMC). The study surveyed 800 staffs working for commercial banks in HCMC, but 775 samples processed and answered 35 questions. The data collected from July 2020 to October 2020. The authors tested with Structural Equation Model (SEM). Finally, eight factors affect the development of non-credit services of commercial banks in HCMC with a significance level of 0.01.