Issue: Số 21 - Tháng 10 - 2023Tài chính - Ngân hàng - Bảo hiểm
Factors affecting the capital adequacy ratio of Vietnamese joint-stock commercial banks
Published: July 22, 2026
Abstract
This study uses the regression method on panel data collected annually during the period of 2009-2022, to identify micro and macroeconomic determinants affecting the capital adequacy ratio (CAR) of 25 Vietnamese joint-stock commercial banks. The study finds that for microeconomic factors, the return on total assets ratio, liquidity, and equity-to asset ratio positively impact CAR, while the net interest margin has a negative impact on CAR. For macroeconomic factors, inflation has a negative impact on CAR, while economic growth positively affects CAR. The study did not find the impact of bank size and allowance for credit losses on CAR. Based on these findings, the study proposes some recommendations to help Vietnamese commercial banks and the Government of Vietnam increase CAR in the future.
Keywords
capital adequacy ratioCARVietnamese commercial bank
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