Determinants of profitability of commercial banks in Vietnam
Abstract
With kthe koverall kpurpose kof kinvestigating kdeterminants kaffecting kprofitability kof kcommercial kbanks kin kVietnam, kthis kstudy kis kconducted kwith kdata kcollected kfrom kfinancial kstatements kof k23 kcommercial kbanks kin kVietnam kfor kthe kperiod kof k2010 k- k2017. k
The kreturn kon kassets k(ROA) kand kreturn kon kequity k(ROE) kare kchosen kto kmeasure kbank kprofitability. kDeterminants kare kseparated kinto ktwo kgroups: kbank-specific kfactors k(including kbank ksize, kratio kof kequity kto ktotal kassets, kratio kof koutstanding kloans kto ktotal kassets, kratio kof kprovision kfor kcredit kloss kto koutstanding kloans, kratio kof kdeposits kto ktotal kassets, knet kinterest kmargin, knon-interest kincome kmargin) kand kmacroeconomics kfactors k(GDP kgrowth krate, kinflation krate kCPI). kThis kthesis kuses kthe kquantitative kmethod kincluding kdescriptive kstatistics kand kregression kanalysis. kAfter kanalyzing kand ktesting, kthe kauthor kchooses kthe kGeneralized kLeast kSquares kRegression kModel kas kthe koptimal kmodel kfor kexplaining kthe kresults. k
In kconclusion, kwhereas ksome kdeterminants ksuch kas ktotal kassets, knet kinterest kmargin kratio, knon-interest kincome kmargin, kinflation krate khave kpositive kimpact kon kprofitability kof kthe kcommercial kbanks kin kVietnam; kother kfactors k(equity kratio, kratio kof kprovision kfor kcredit kloss, kratio kof kdeposits kfrom kcustomers) khave kopposite keffect. kFurthermore, kratio kof koutstanding kloans kpositively kcorrelated kwith kreturn kon kassets kbut kthe kresult kcannot kfigure kout kthe kimpact kof kthis kratio kon kreturn kon kequity. kThis kresearch kalso kcannot kmake kconclusion kabout krelationship kbetween kGDP kgrowth krate kand kbank kprofitability kin kVietnam.
Finally, kthe kauthor kproposes ksome ksolutions kand krecommendations kin korder kto khelp kbanking kindustry kto kenhance ksustainable kprofit kas kwell kas kmaintain ksafety kand kstability kof kwhole ksystem.