Bank Capital Adequacy Ratio and Bank Performance in Vietnam: A Simultaneous Equations Framework

• 발행기관: 한국유통과학회
• 저자명: Binh Thi Thanh DAO Kieu Anh NGUYEN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.6, 39~46쪽, 전체 8쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.06.30

영문 초록

Playing an important role in developing the economy and overall developments of the country, commercial banks have to be aware of their crucial presence in order to perform well and contribute significantly. At the same time, as a place to receive deposits, banks are required to be in safe situations to avoid bankruptcy or deal with financial crises. This research seeks to identify the determinants of Capital Adequacy Ratio and Banks’ performance as well as the relationship between these two dependent variables. The paper uses 128 observations of 16 Vietnamese commercial banks during the period from 2010 to 2017, with two simultaneous dependent variables CAR and ROE, and independent variables including Return on Assets, Tobin Q, Credit growth, GDP growth, Equity to Deposits, Loans to Deposits, Bank size, Cost to Income, Liquidity risk, Provision for Loan loss ratio, Non-performing loans and Inflation. The results reveal that Capital Adequacy Ratio and Banks’ Performance have statistically significant relationship and Credit growth, GDP growth, Equity-to-Deposit ratio and Costto-Income ratio all have significant effects on two dependent variables. The findings of this study suggest that commercial banks should control the respective elements in order to maintain adequate level of capital and also create effective performance.

목차

1. Introduction

2. Literature Review

3. Research Methodology

4. Empirical Results

5. Conclusion

References

키워드

Capital Adequacy Ratio CAR Performance Macro Variables Economic Growth Vietnam