| dc.description.abstract | This study aims to explore the impact of liquidity management on the profitability of
commercial banks in Vietnam during the period 2012-2023. The research sample
includes 27 commercial banks, representing the entire Vietnamese commercial banking
system. The liquidity ratios used in the study include investment ratio, quick ratio,
capital adequacy ratio, net credit facilities/total assets and current assets ratio.
Profitability is measured by return on equity (ROE) and return on assets (ROA). The
study applies quantitative methods and uses estimation techniques such as OLS, FEM,
REM and GLS on panel data to test the regression model. Experimental results show
that increasing the capital adequacy ratio and investment ratio has a positive impact on
bank profitability. On the contrary, quick ratio and current assets ratio negatively affect
profits. From these results, the study recommends that banks should optimize the use of
existing liquidity in investments to increase profits. At the same time, banks need to
apply a unified liquidity management framework to ensure sufficient liquidity is
maintained for effective operations. In addition, banks should also conduct analysis on
liquidity growth rate and the ability to balance capital sources and capital usage | en_US |
