Impact of macroeconomic factors and interaction with institutional performance on Vietnamese bank share prices

Shares of listed banks in Vietnam gain a lot interest from investors and regulators. It is important to study the primary drivers banks’ share prices. In this context, Gross Domestic Product (GDP), Gold Price (GP), Ninety-day Interbank Interest Rate (R), USD/VND Exchange (FX) are selected as representatives for macroeconomic variables. A new contribution application interactive factors between macroeconomics bank performance (i.e., Equity Capital (E), Deposit ?mounts (D), Loan Amounts (L), Non-performing Loans (NPLs), Leverage (LEV), Adequacy Ratio (CAR), Return on Assets (ROA), Stock Beta (Beta)) evaluating their impact Applying econometric method Two-Stage Least Square (2SLS) quarterly financial data 13 Q1/2009 Q3/2020, regression results show that GDP improvements can foster an increase prices, strengthened if have good ROA, CAR, with strict control NPLs. The R also has positive price level increases NPLs, LEV, controlled at optimal levels. However, empirical evidence drawn suggests FX GP not significant contributor especially does manage NPLs LEV. Moreover, E, D, L movements prices significant.