Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313449 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Banking and Financial Economics (JBFE) [ISSN:] 2353-6845 [Issue:] 16 [Year:] 2021 [Pages:] 56-71
Publisher: 
University of Warsaw, Faculty of Management, Warsaw
Abstract: 
From 2008 to 2019, this research examines the effect of equity capital on the profitability of 24 Vietnamese commercial banks. The research findings indicate that, when ROAA and ROAE are used to measure the bank's profit, the equity capital ratio (CAP) has a statistically significant positive effect on the ROAA while having a negative effect on the ROAE. Between 2013 and 2019, the CAP variable has a positive effect on the ROAA and ROAE, indicating that banks with a larger equity capital ratio achieved higher profitability. Furthermore, the deposits-to-assets ratio (DTA) and loan-loss reserves ratio (LLR) both have a negative effect on both proxies for bank profitability, although bank size (SIZE) has a negligible effect on bank profits in the majority of circumstances. Additionally, the rate of GDP growth and inflation (INF) have a beneficial effect on the bank's profitability. The study's objective is to present some critical policy implications for bank executives about the importance of adequate equity capital for the bank's sustainability development.
Subjects: 
bank equity capital
bank profitability
commercial banks
JEL: 
G20
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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