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Growing Science » Accounting » Determinants influencing capital adequacy ratio of Vietnamese commercial banks

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Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
Quarterly Publication
Volume 6 Issue 5 pp. 871-878 , 2020

Determinants influencing capital adequacy ratio of Vietnamese commercial banks Pages 871-878 Right click to download the paper Download PDF

Authors: Hung Phuong Vu, Ngoc Duc Dang

DOI: 10.5267/j.ac.2020.5.007

Keywords: Capital Adequacy Ratio, Commercial Banks, Vietnam

Abstract: This study employs a panel data analysis to identify the factors that significantly affect the capital adequacy ratio (CAR) of Vietnamese commercial banks for the period from 2011 to 2018. During this period, the number of banks had decreased from 41 to 31 due to mergers and acquisitions. The variables that are hypothesized to affect the capital adequacy ratio of commercial banks in Vietnam include bank size (SIZE), deposit (DEP), loan (LOA), loan loss reserves (LLR), liquidity (LIQ), return on assets (ROA), return on capital (ROE), net interest margin (NIM), non-performing loans (NPL) and leverage (LEV). The results indicate that LEV, LLR, ROE had a negative impact, ROA had a positive impact, and SIZE, DEP, LOA, LIQ, NIM, NPL did not significantly influence the CAR of Vietnamese commercial banks.

How to cite this paper
Vu, H & Dang, N. (2020). Determinants influencing capital adequacy ratio of Vietnamese commercial banks.Accounting, 6(5), 871-878.

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Journal: Accounting | Year: 2020 | Volume: 6 | Issue: 5 | Views: 3101 | Reviews: 0

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