A study on the factors affecting the financial stability of commercial banks in Vietnam

This study aims to identify the key factors influencing the financial stability of commercial banks in Vietnam. The research utilizes panel data collected from 25 joint-stock commercial banks over the period 2015 - 2022. The Z-score is employed as a proxy for measuring financial stability. Based on the regression analysis results, the study finds that total assets, return on equity (ROE), and the equity-to-total assets ratio have a positive impact on the financial stability of commercial banks. In contrast, the growth rate of post-tax profit exerts a negative influence. Additionally, the study reveals that credit growth and the loan-to-total assets ratio do not have a statistically significant effect on financial stability. These findings provide empirical evidence for both policymakers and banking managers in their efforts to enhance the stability of the banking system in Vietnam.