| dc.description.abstract | First of all, the banking system acts as the main institution of capital flow management in the economy, including the case in Vietnam. The development of the economy is majorly relied on the performance of commercial banks and its annual growth rate of profitability. After a fluctuating period of development due to the volatile economic situation of the post-financial crisis and restructuring phase, the banking system continually enters the Covid pandemic phases. Therefore, this study is conducted with the purpose of examining the determinants of bank profitability in Vietnam in this phase. After incorporating the empirical evidence from previous research in both Vietnam and other countries, this dissertation adopts the two groups of factors: internal determinants (capitalization, bank size, operating efficiency, liquidity, loans, credit risk, credit growth) and external determinants (GDP, Inflation). The generalized least square regression model (GLS) is adopted to evaluate the panel data of 19 biggest Vietnamese commercial banks from 2017 to 2021. The results in this study show that only loans have mixed impact on the bank profits, while capitalization, bank size, liquidity, loans, credit growth and GDP imply the positive effect
on banks performance, as opposed to the negative relationship from operating efficiency, credit risk and inflation. From the result, the findings in this paper suggest that commercial banks in Vietnam should pay more attention to improve the capitalization and bank size to strengthen the equity as well as assets. Incorporating with expanding loans and increasing liquid assets, these factors significantly affect the bank performance and income generating ability in Vietnam. | en_US |
