Impact of Capital on Profitability of Banks: Evidence from Vietnamese Commercial Banks
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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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open access

Published: 14 June 2019

Impact of Capital on Profitability of Banks: Evidence from Vietnamese Commercial Banks

Do Hoai Linh, Vu Kieu Trang

National Economics University, Vietnam

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.02.02.94

Pages: 379-395

Keywords: Capital, Profitability, Commercial banks, Vietnam

Abstract

This study aims to investigate the impact of capital on bank profitability with evidence from Vietnamese commercial banks. With a sample of 30 Vietnamese commercial banks, the findings show the positive relationship between capital and bank profitability during the period of 2012-2018. Accordingly, the influence of capital is more pronounce in the case of small-sized banks, whereas it exerts insignificant influence on the profitability of large-sized banks. Moreover, a high degree of capital increased the profitability of private-owned banks, the impact of capital is positive and significant for the net interest margin of state-owned banks only.

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