Determinants of Bank Profitability – Evidence from Vietnam

21 Pages Posted: 22 Aug 2014 Last revised: 27 Mar 2017

See all articles by Jonathan A. Batten

Jonathan A. Batten

RMIT University

Xuan Vinh Vo

University of Economics Ho Chi Minh City

Date Written: August 22, 2013

Abstract

This paper investigates the determinants of bank profitability in the Vietnam from 2006 to 2012 employing a rich and detailed dataset. Employing an assorted econometric panel data method, the findings of the paper indicate that capital adequacy, the level of riskness, productivity and bank operation costs have a positive impacts on profitability. In addition, we find that that bank size does not consistently and significantly affecting profitability. We also find that significant governance ownership in bank has negative effect on bank performance. Other industry specific and macroeconomic variables which have strong impacts on bank include concentration, inflation and economic growth.

Keywords: Vietnam bank, bank profitability

JEL Classification: G10, G12

Suggested Citation

Batten, Jonathan A. and Vo, Xuan Vinh, Determinants of Bank Profitability – Evidence from Vietnam (August 22, 2013). Available at SSRN: https://ssrn.com/abstract=2485023 or http://dx.doi.org/10.2139/ssrn.2485023

Jonathan A. Batten

RMIT University ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria
Australia

HOME PAGE: http://https://www.rmit.edu.au/contact/staff-contacts/academic-staff/b/batten-professor-jonathan

Xuan Vinh Vo (Contact Author)

University of Economics Ho Chi Minh City ( email )

Ho Chi Minh City, Ho Chi Minh City
Vietnam

HOME PAGE: http://www.ueh.edu.vn

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