| dc.description.abstract | This study's main objective is to establish the influence of internal factors and
external factors on the profitability of 29 commercial banks in Vietnam between 2012 and
2019 from 2 groups: 25 private commercial banks and 4 privatize commercial banks. This
study uses regression models to find out the impact of economic growth (GDP), inflation
(CIP), real interest rate (RIR), bank size (SIZE), capital ratio (CAP), loan ratio (LOA),
deposit ratio (DEA), return on assets (ROA), return on equity (ROE) and net interest
margin (NIM). The seven variables selected from the usual banking documents are
credentials for bank specific and macroeconomic factors. Empirical research shows that
ROE is the most reliable indicator of profitability of Vietnamese commercial banks in the
period of 2012 - 2019. Both groups of banks are affected by internal factors as CAP, LOA
and DEA (except SIZE). On external factors, private commercial banks are positively
affected on the profitability by GDP, while CPI and RIR have positively affected on
privatize commercial banks. Vietnamese commercial banks are inefficient use of customer
deposits. Therefore, the study recommends that banks should expand investment policies
and improve management efficiency to optimize profits | en_US |
