RESEARCHING FACTORS AFFECTING TO CAPITAL ADEQUACY RATIO OF 10 VIETNAM JOINT – STOCK COMMERCIAL BANKS APPOINTED TO EXECUTE ACCORDING TO STANDARD BASEL II BY VIETNAM STATE BANK

Abstract

The purpose of this study is to research about influential factors affecting to capital adequacy ratio of 10 Vietnam Joint-stock Commercial banks appointed to execute according to Standard Basel II by Vietnam State Bank, from 02/2016. The study uses samples from 10 Vietnam Joint-stock Commercial banks including: Vietcombank, BIDV, VietinBank, Techcombank, ACB, VPBank, MBB, MaritimeBank, Sacombank and VIB, researched during the periods of 2007 to 2016 using FGLS method (Feasible Generalized Least Square). The results indicated that while bank size, return on assets, liquidity and deposits had negative impacts on capital adequacy ratio, the leverage had positive influences on it. On the other hand, loan loss reserves and loans were found no significant effect on capital adequacy ratio.