NON-LINEAR IMPACT OF ICT ON PROFITABILITY OF COMMERCIAL BANKS IN VIETNAM.

The aim of this article is to evaluate the nonlinear impact of ICT on the profitability of commercial banks in Vietnam and determine the ICT threshold for banks to gain additional profits from this investment. The research sample was selected by purposive sampling method, including 25 commercial banks in the period 2010-2020. The estimation results according to the 2-step system GMM indicate that ICT has a Ushaped nonlinear effect on profitability, and profitability will be lowest when the readiness index for ICT development and application reaches 0.6052 according to the derivative method, if this level is exceeded, ICT will have a positive impact on profitability and vice versa. [ABSTRACT FROM AUTHOR]